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somenameforme an hour ago

The article is complete and utter nonsense, probably intentionally so because it's the type that will drive engagement. The reason planned obsolescence is insidiously effective is precisely because the typical consumer does not take reasonable account of product longevity. You can easily say 'yeah I like how bright [or whatever else] this bulb is' but lifespans are scarcely taken into account. If they were then massive swathes of the market wouldn't exist - a typical example being the $20 coffee makers which you'll end up paying way more for than a decent one due to the fact they just constantly break.

And all cartels are obviously built around maximizing income, so I don't understand what 'illegitimate reasoning' would be. The same thing is still certainly happening today, but without the paper trail. A clear example of it is in the video game console industry. All the way up until the PS3 era of consoles, both Microsoft and Sony were heavily subsidizing their hardware. The video card in the original XBox was worth substantially more than the retail price of the system itself.

Then in the PS4 era they both stopped, at the same time and started releasing consoles in mid-range retail hardware with minimal subsidization. That makes 0 sense from a competitive point of view. If your main competition stops subsidizing their product, that's the exact time you subsidize harder than ever and claim the market for yourself. But it makes perfect sense if a couple of c-levels happened to have a chat and casually mentioned that ending the subsidization battles would end up being vastly more profitable for both of them. 'Yeah, I agree.'

pie_flavor 26 minutes ago | parent | next [-]

If you put numbers on a package, the consumer will choose the bigger numbers. Taking some statistic out of context like "the typical consumer does not take reasonable account of product longevity" doesn't make sense when the only two things a lightbulb can do better are 'be brighter' and 'last longer', and both are prominently displayed on the package. The typical consumer does not pick coffee makers based on longevity because the coffee makers don't put longevity on the package, they put the number of feature buttons, and then the consumer chooses based on that instead of inferring or researching a longevity, and the actual takeaway is that consumers are bad at inference. And on this you call the article's extensive description of how lightbulbs work and how lifespan trades off with efficacy 'complete and utter nonsense'?

The video game system analysis is junk too. No, Sony and Microsoft are not in a cartel, you can tell by how they're in vicious competition with each other and Sony's winning. Assuming similar moves made at similar times is obvious proof of collusion is assuming that one party's move was just picked out of a hat, rather than market incentives prompting this move and applying equally to both companies causing both to come to the same conclusions for the same reasons. The actual reason the level of subsidization dropped, which you can find by googling for five seconds, is because they switched from bespoke hardware stacks to standard PC components, which were cheaper. No, you do not make the stupid financial move of making your hardware stack even more expensive just because your competitor made theirs more efficient.

somenameforme 2 minutes ago | parent [-]

The level of subsidization has nothing to do with hardware customization. You can have subsidized retail hardware or customized hardware sold at cost. They both went from high end heavily subsidized hardware to mid-range minimally subsidized hardware at the exact same time. Colluding in this way means they both dramatically increase their profit margins, and obviously does not preclude competition in other aspects.

Though they are also overtly colluding in other areas. For instance console exclusives used to be a major selling point, but they greatly empower studios to the consoles manufacturers detriment. The PS1 and PS2 had around 500 exclusive titles each. By the PS3 we're down to 174, 49 for the PS4 and now we're down to 26 in the PS5 era. Microsoft trends similarly and it was a strategic decision, to the point that they made a big announcement recently about returning to exclusives. As if the idea of having a competitive edge is some novel or revolutionary concept.

mathgeek an hour ago | parent | prev | next [-]

Regarding the PS3 specifically, that was the breaking point for subsidizing because it ended up being famously and heavily used for compute clusters. We see the same effects today where any chip useful for high end gaming is also useful for AI.

mathgeek an hour ago | parent | prev | next [-]

> a typical example being the $20 coffee makers which you'll end up paying way more for than a decent one due to the fact they just constantly break.

I chuckled a bit realizing that you probably meant a decent coffee maker to cost far less than what I think a “decent” one does. Took me a moment to shake “you could buy a $20 machine every couple years for decades before you break even.”

42 minutes ago | parent | prev [-]
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