Of course large companies can be very dumb... but if they really understand
this market supply/demand thing, I don't think they'll want to raise the
prices.
I'd forgotten what it's called, but in marketing, there's one strategy in
which you keep the prices up until the demand really drops significantly.
This way, the people who don't want to wait for price drop will pay the
higher price, and then everyone else buys after the price drop.
I used to live in Thailand, where Sony and Sharp basically offers what they
offer in the US. Remember approximately 37 Thai Baht is 1 US dollar, so:
Sony had kept MD-related things very expensive. One color collection blank
was like 200-300 Baht, the MZ-E35 cost 13000 Baht.
But after several months, Sony cut the prices, so that one blank goes at 99
Baht, and the E35 sells for between 6-7000 Baht. The R55 also used to be
expensive, but dropped to about 10000 Baht. The price never went up again
even with newer models replacing the old ones. I think Sony knew that
keeping the price up didn't work.
Also - at least in Japan - the companies now recognize 20000 yen (street
price, not MSRP) as a crucial mark. Models that cut below 20000 yen sell
fairly well, like the JVC XM-PX3. JVC said those are mostly bought by
primary and junior high kids. :)
And remember, in Japan you can get Sharp/Sony/Panasonic boomboxes usually
for less than their portable recorders. If I buy a Panasonic MDX5, I get
digital dubbing without the cable hassle, I get the new HDES chip, I get a
remote with a keypad, plus I get two speakers, for less than what I'd pay on
a MR100.
Leon
> this can be a good thing or bad thing.
> true, more of the quote "little ones" will have discovered the minidisc, but
> the price on minidisc will probably go up due to the popular demand.
> i also dont think other companies are going to spend as much money on
> minidisc technology than on mp3.
> ultimately, i feel that companies are going to raise their prices on minidisc
> equipment due to higher demand, and continue to develope and produce mp3
> players at cheaper prices and better quality.
> it all depends on how u see the minidisc economy.
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