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HappySqurriel said:

I could be wrong but I think the PS3 is caught in a pretty deadly loop right now.

  1. Low sales forces gamers, publishers/developers and analysts to ask the question "What's wrong with the PS3?"
  2. The common answer to the question "What's wrong with the PS3?" is that it has too high of a price
  3. The high price causes speculation and rumor that the PS3 will see a major price cut very soon
  4. The rumors and speculation makes it into gaming and more mainstream press
  5. Informed consumers who are considering buying a PS3 decide not to in anticipation of a price cut
  6. Sales are reduced

The longer this cycle continues the worse things will get for the PS3 ... eventually publishers may decide that the PS3 simply can not be sold which would lead to them pulling support; this point is still months away (or sales at a much lower leve) but could be met unless something changes.


I've been contemplating this same thing, how everyone saying Sony has reduced costs and could cut the price this year could actually be hurting their sales right now.

One thing I ask though is this: We've seen them pull support for the 20gb from the US, and it'll probably never rear it's head in Europe or Korea. Would it make a difference if they cut it down to $499? Maybe short term, but long term? I think it might actually be better if they leave it at 599 until they can safely chop 200 off of the top.