Will Sony have supply issues with the PS3 this Holiday?

[stiak]

dsgrue3 said:

0cton said:
dsgrue3 AFAIK they don't sell consoles to stores, that's how they can drop the price how they want, they control the price not the stores. for this they must half-rent a section in stores, and shipping is an issue as well.

Yes I know they set the retail price. However I was under the impression they sold to the stores for cheaper so both parties benefit from the sale between the consumer and the store. Say the store gets the product for $50 cheaper, then that's the store's profit. This isn't how it works?

In europe at least the supplier (i.e. Sony/MS/Nintendo) can only set a RRP (recommended retail price).  They then sell the product to the retailers at 'trade price', which is lower than that.  Different retailers can negotiate different pricing depending on size/importance/etc.  Retailers set the price to the consumer to whatever they want.  I believe it is illegal for a supplier to attempt to control retail pricing (at least in EU).