Gripen is looking to start/win a price war.

via Gripen Blog.

With the economic meltdown, defence budgets are facing major cuts around the world. Demands are getting tougher day by day. According to Saab’s CEO Hakan Buskhe’s  presentation ‘Breaking The Thought Barrier’, these tough demands however can benefit Saab.
“Our customers always demand more functions for less cost and that is rather unique in the defence industry. It is normal for other industries. But I believe that it is possible also in our business,” Buskhe says. 
He also stressed that these tougher demands have changed the market equation and competitiveness along with efficiency is the key thing now.
“Being a rather big defence company in a small country, spending 1 billion US dollars a year on R&D, we have to be lean as the Swedish state cannot bear all our investments. So we invest ourselves.”
There is an increased demand for an aircraft with multi role capabilities at an economical price. “This is something that will change the purchase pattern,” he says.

This will beg the question.

What is the floor on good enough?  What is considered an economical price on combat aircraft?  Can "prestige" be fully separated from aircraft purchasing decisions?  

The Gripen has tons of fans but few buyers.  We'll see if the economy truly has created a new buying paradigm.