Would a PS3 price cut do it?

[kars]

Stromprophet said: 1) 360 hasn't price dropped yet and hasn't even announced an intention beyond doing it sometime in 2007. They haven't even said they will drop the price when their new SKU comes out.

It does not matter, since the biggest german electronic retail chains lowered the price, as I said. At the moment you would be stupid to buy the Xbox for a higher price.

2) Sony as a company is profitable, has a low debt to equity ratio (long term loans as compared to the value of the company), so I really don't think that would be an issue.

Well they have lost most of their critical production capabilities. That is their problem, where they once produced their own TVs they now have to buy their Displays from Samsung. They are now totally dependendend from their suppliers, which generate most of their internal prices. And their game sector would look pretty bad without the PS-2, Another problem: they sell some PS-3 but few games. Even their own software production studios would be hard pressed if they should really produce the games exclussively for the PS-3 or if it would be more feasible to go the multi plattform way. The big proplem every of their studios has its own financial structure. If their PS-3 department wants exclussive titles they have to pay for it, otherwise their software producer would have to argue with the company management, why their internal revenues are so bad. Especially Sony has many problems of this kind. HD DVD would never have been an option if the first BluRay titles (produced by Sony) would noit have been inferior to HD DVDs.