5 ms·
If the goal is to extract maximum profit from the consumer for each console, sure. But what of consumer goodwill? What of lost downstream profit from games and
by Arrath 4y ago
If the goal is to extract maximum profit from the consumer for each console, sure.
But what of consumer goodwill? What of lost downstream profit from games and services sales if people decide to forgo a console due to the MSRP?
Some people may be willing to stomach the price from resellers, would they if it was Sony etc. pricing it at that level?
- runnerup 4y agoSony can drop the price as demand wanes.
- 30944836 4y agoThe situation is so much more complex than this, and involves a mix of legal agreements, corporate philosophy, and consumer psychology. You might benefit from reading this article on Price Anchoring: https://www.priceintelligently.com/blog/bid/181199/price-anchoring-to-optimize-your-pricing-strategy https://www.priceintelligently.com/blog/bid/181199/price-anc...
- deleted 4y ago[deleted]
- mjfl 4y agoPS5 has been completely sold out for 2 years now. There seems to be considerable slack for a price raise from Sony, and they have every right to claim the profit that currently the bots are taking.
- 30944836 4y ago>they have every right to claim the profit that currently the bots are taking Consumers don't see it this way. They often latch on to completely "irrational" cues in forming opinions of a brand. See: "Apple Tax." Note: I put "irrational" in quotes to indicate that consumers exhibit un-intuitive behavior. It's not actually a value judgement about the behavior itself, only indicating that in a purely supply-and-demand driven market environment, these behaviors would not be exhibited.
- mjfl 4y agoThe Apple tax is a really bad example for your argument though because Apple is one of the most profitable companies in the world and has not apparently paid very much for this 'bad rep'.
- 30944836 4y agoThat the term 'Apple Tax' exists shows that there is a reputation hit and shows that consumers are price conscious in ways that do not take into account supply and demand as a sole or primary factor when determining their brand sentiment. That Apple is the most profitable in comparison to other companies says nothing about how profitable it could be if the negative brand perception didn't exist.
- scarface74 4y agoApple already has the most valuable brand https://www.forbes.com/the-worlds-most-valuable-brands/ https://www.forbes.com/the-worlds-most-valuable-brands/