Thread: PS3 Economics
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Old 11-21-2006, 06:49 AM   #31 (permalink)
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Quote:
Originally Posted by stevo
Demand far exceeds supply. ...

Can anyone offer any reason as to why the experts would set the price at $600?

So the other question that must be asked is:
If they kept the price low (this is not really low it is just relative) at $600, and they knew that they could probably get much more for it, then why did they not produce more to satisfy the demand.

I think, as mentioned by someone earlier, it is all about perception.
Pricing it at $600 and holding back on (or not providing enhough) supply.
serves Sony's purpose.

They (artificially) did the following
- They got people to buy it for $600
- They caused the value of the PS3 to be about $3000 without having to actually look like they are gauging the product. 12 year old: if people are paying $3000 for it, it must be awesome. I have to get one.
- They caused people to want it. People want what is scarce.
- The got tons of free publicity
- They bought some time to come up with some more. becuase of all this people will wait a little longer than they would have instead of right away buying a 360 or Wii.

Without anybody actualy playing it, prior to selling it in the stores, they got people to want it and want it real bad.

Now all they need to do is come through with more supply in time to fully benefit from the demand they created.

I think they did a pretty good job.




Quote:
Originally Posted by guccilvr
*MNSFW*

http://video.google.com/videoplay?do...38642038&hl=en

this just solidifies my desire for a Wii
That video is awesome.


Have you seen this one?
http://video.google.com/videoplay?do...37310048&hl=en
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Last edited by Sticky; 11-21-2006 at 06:54 AM.. Reason: Automerged Doublepost
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