Canon executives have a lot of balls to juggle. They have the outside subcontractors who might design and/or manufacture their sensors but then demand concessions in other markets. In other words, Sony may make a series of sensors for Canon but then will demand that Canon doesn't produce a model with a given spec list at a given price (i.e., an updated MKIV to go against A7SII/RII). Canon will then issue counter demands (nothing from Sony in the 1D X segment). Sony will then counter the counter (by demanding that 1DXII is stripped of the available video features, as not to compete against the FS-5 and FS-7). These deals result in a checkerboard pattern of various models, features and prices.
The problem for Canon here is that not all checker squares are equal. Under the historical market conditions, a $2,000 camera, as an example, may have competed against others in the $1,500-$2,500 range, a $1,000 in the $700-$1,500 and so on. But Sony has been packing so many features, performance qualities and such a massive processing power into their "niche" models that they sucked in huge portions of buyers that would have stayed away from it otherwise. An A7RII may have only been considered a direct competitor to 5DMKIII but now it can fight against 6D, 7D, 5Ds/r and even 1DXII while A6300 is a legitimate option vs. T6, D80, 6D and 7D. That all eats up into Canon's high margin camera sales and its overhead is likely far too heavy not to have the net effected by the drop in gross in a major, major way.
The problem for Canon here is that not all checker squares are equal. Under the historical market conditions, a $2,000 camera, as an example, may have competed against others in the $1,500-$2,500 range, a $1,000 in the $700-$1,500 and so on. But Sony has been packing so many features, performance qualities and such a massive processing power into their "niche" models that they sucked in huge portions of buyers that would have stayed away from it otherwise. An A7RII may have only been considered a direct competitor to 5DMKIII but now it can fight against 6D, 7D, 5Ds/r and even 1DXII while A6300 is a legitimate option vs. T6, D80, 6D and 7D. That all eats up into Canon's high margin camera sales and its overhead is likely far too heavy not to have the net effected by the drop in gross in a major, major way.
..Who is pulling those together? Canon or Panny?