Gamers could become winners in a price war this holiday as console manufacturers slug it out for scarce consumer dollars, according to a report released this week.
One way to do that is to lower the price, said P.J. McNealy, principal of Digital World Research.
McNealy, in a report entitled "The Business Model Impact of Video Game Hardware Launch Pricing and Price Cuts," predicted that Sony Corp. will lower the price of its
Microsoft will likely refrain from cutting the price of its $200
Why race to the bottom on pricing, especially if it means taking a hit on hardware profits?
"It's a classic razor and razor blade business model," McNealy wrote, "where the company loses money on the razor, but makes it up selling razor blades."
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