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Fortune Magazine: How Nintendo is beating Sony and Microsoft
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<blockquote data-quote="Vigilance" data-source="post: 3643743" data-attributes="member: 4275"><p>I wasn't aware that saying someone didn't understand an issue was a "personal attack". If so, should I have reported your post when you told me I just didn't understand high definition electronics and what people would pay?</p><p></p><p>You know, when I said the PS3 would be in last place and you told me I was flat wrong? That thing I was 100% right about? That the sales would be Wii, then 360, then PS3?</p><p></p><p>So don't act like you were right and I was wrong.</p><p></p><p>On the games being $100 thing, I was quoting a Sony executive. I know, given the rate at which they lie, that's probably the last person I should have quoted, but don't put words in my mouth.</p><p></p><p>I didn't say the games would be 100 bucks. Sony said they might be, I said that was crazy. </p><p></p><p>So, are you ready to stop with this petty score-keeping thing? I was right about something. You were right about something. How's that. </p><p></p><p></p><p></p><p>See this is how I know you're wrong about price not mattering, because MS has repeatedly said that they KNOW their price is too high. That the sweetspot in the market is @ $200, the price the Wii is flying off the shelves at.</p><p></p><p>So why aren't they dropping the price?</p><p></p><p>Because right now they don't have to. As long as the PS3 stays at $600, and as long as the Wii's install base isn't obscenely larger (which, with the lead, it's only just now passing the 360's install base, even though it's selling at a 2:1 rate). </p><p></p><p>So for now, MS has no pressure to change. They're being smart and playing for time.</p><p></p><p>You notice, as soon as Sony announced it's "price cut", analysts started pressuring MS? </p><p></p><p>Those are the forces that are driving the situation right now. It's a question of install bases.</p><p></p><p>As long as MS has the lead in the install race, or at least is competitive enough to keep 3rd party support intact, they know they don't need a price drop, even though they also know where the sweet spot in the market really is.</p></blockquote><p></p>
[QUOTE="Vigilance, post: 3643743, member: 4275"] I wasn't aware that saying someone didn't understand an issue was a "personal attack". If so, should I have reported your post when you told me I just didn't understand high definition electronics and what people would pay? You know, when I said the PS3 would be in last place and you told me I was flat wrong? That thing I was 100% right about? That the sales would be Wii, then 360, then PS3? So don't act like you were right and I was wrong. On the games being $100 thing, I was quoting a Sony executive. I know, given the rate at which they lie, that's probably the last person I should have quoted, but don't put words in my mouth. I didn't say the games would be 100 bucks. Sony said they might be, I said that was crazy. So, are you ready to stop with this petty score-keeping thing? I was right about something. You were right about something. How's that. See this is how I know you're wrong about price not mattering, because MS has repeatedly said that they KNOW their price is too high. That the sweetspot in the market is @ $200, the price the Wii is flying off the shelves at. So why aren't they dropping the price? Because right now they don't have to. As long as the PS3 stays at $600, and as long as the Wii's install base isn't obscenely larger (which, with the lead, it's only just now passing the 360's install base, even though it's selling at a 2:1 rate). So for now, MS has no pressure to change. They're being smart and playing for time. You notice, as soon as Sony announced it's "price cut", analysts started pressuring MS? Those are the forces that are driving the situation right now. It's a question of install bases. As long as MS has the lead in the install race, or at least is competitive enough to keep 3rd party support intact, they know they don't need a price drop, even though they also know where the sweet spot in the market really is. [/QUOTE]
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