October 4, 2003

Desperation Mode?

by Jonathan Metts - 11:40 am PDT

Some people see the new GameCube price cut as a sign of weakness and a precursor to the system dying early. Jonny explains why the GameCube isn’t and won’t be another Dreamcast.

When it comes to system price cuts in the gaming industry, there are two basic patterns. First, all competing systems can cut their prices at the same time. These cuts tend to be reactionary rather than coordinated, but as far as consumers are concerned, it just means gaming is cheaper than before. The second type of price cut is unilateral (forgive the term), in which one system lowers its price and the others do not immediately follow.

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