I think the $100 off deal ends by the end of January. I actually got $100 off + 12 months no interest. 

 Maybe I did not expressed myself properly. It's not like Sony investors are willing to loose lots of money on the PS3 while MS investors are not willing to loose any money on the 360.

 It's more like this:

- The PlayStation business is still at a profit, so PS1 and PS2 are paying for the PS3 losses - Xbox business is down $7B lifetime, investors never seen a profit from it (except last quarter's $200M or so)

- Selling lots of PS3s (even at a loss) brings Sony lots of advantages in the near future. If blu-ray wins the HD format war Sony will make billions of dollars from blu-ray media in the next few years. Analysts know how much the HD market is worth. Why do you thing Sony and Toshiba put so much fight (and money) into it? Just for fun?

- So, if another PS3 price drop (and more losses) can help Sony win both HD and console wars then Sony is in to cash a lot in the near future. I don't know how the 360 can bring that kind of cash into MS, do you? Investors look at the potential for future profit and I think the PS3/Blu-ray win hands down over the never proven Xbox business.

I think Sony believes the PS3 can help them finish HDDVD for good and so they are trying to give it the final punch to the format wars.

 Also don't forget that even today Sony is giving $100 back on a PS3 (sony card) and 5 blu-ray movies. Both offers end by the end of January so they can afford another price drop. 

Regarding your comment about reading Money/Economist, it's pretty lame. How do you know I don't?

lol, God bless your soul. I love seeing people put holier than thou turds in their place.

Plus you are correct on all points, everyone was yelling about Sony being on the verge of bankruptcy, and seem to forget that Microsoft has already sunk almost 8 billion dollars into a division that has only turned a profit for one quarter, based on a game release the likes of which you will never see again.

Also, while Sony is basically breaking even at the moment at current prices, the 360 still isnt profitable per console. Its been out for twice the time, I think I know which console will be able to drop its prices and still take a reasonable loss or make profit faster.

If the PS3 does drop its price to 299, which I do doubt will happen before GTAIV release, it will be what? 49 dollars more then a Wii and cheaper then a 360? I dont think it would crush the 360, but it would put Microsoft (who hasnt been able to push more then what? 8.5 million units even with the year they had in games for 2007) in a bad place it would find itself and its board members hard to get out of.

Also I think at the price it will become the new Primary console for gamers (with the Wii as the companion), media center for technophiles and be the come back kid story that the media LOVE to harp on and report on, giving Sony something it hasnt had since it launched the PS3, positive media coverage and free advertisment (something the Wii has had a truck load of).