Originally Posted by Lee Stewart
The demand for the A2 has been very strong if you accept Amazon ranking. The A3 will be available on 10/1/07. That is 7 weeks before Black Friday. Selling 15,000 players per week leaves $1 million on the table. There will be no mad rush to buy players in that 7 week time period.
Toshiba ONLY cares about maintaining the price lead over the BDA. And so far there is only one BD player to be concerned about - the S300. All the other BD players are priced higher starting at $549. People are going to be buying the PS3 as a game console this Xmas - not a BD player. Too many choices of players out there.
You lower your price when the time is right . . and 10/1 is not the right time.
I guess we just disagree that's OK :-)
Yes, they may lose $1 million dollars if they launch at $199, but they'll also probably get $10 million dollars in free publicity, great reviews, selling out, creating demand, etc...
In the Chicago area, 10 years ago or so, a new casino riverboat opened for business. Within a month, someone won a $3 million dollar jackpot playing slots. It was all over the press, their attendance exploded and within a month, they probably made ten times the $3 million they gave away. That's making a splash! They could have run ads saying they pay out 10% more on average than other casinos, but I doubt it would have had the same impact.
Launch at $199, sell out, capture the headlines and make it the must have, I can't believe it only costs that much product of the holiday. Do it in October, so it's in all of the magazines and on all of the Christmas lists for November & December.