You are currently browsing the tag archive for the ‘Discrimination’ tag.

As everyone probably knows, SKUs were a big deal when the X-Box 360 and Playstation 3 came out. They both offered multiple platforms of entry, at different prices. I’m most familiar with the PS3, which offered a 40-, 60-, and 80 gigabyte version. There were also hardware differences between the 40gb version and others (USB ports, etc.)

In today’s ads, I saw nothing of different tiers for the PS3, with all advertisements boasting the 160gb version of the PS3 slim for $299.99. However, X-Box has stuck with this formula, offering a very anemic 4gb version for $199.99 and a beefier 60gb bundle for $299.99.

Storage is, for all intents and purposes, mind-blowingly cheap. Did price discrimination fail in this market, or is there another explanation for the absence of a tiered option for the PS3?

P.S. I realize that this isn’t the exact definition of price discrimination. I think it is close, but the scheme has a different name that escapes me at the moment…and the retail use of each system is the same.

Follow Modeled Behavior on Twitter

Follow

Get every new post delivered to your Inbox.

Join 190 other followers