Sounds like a solid plan, personally if the PS4 is already profitable to them and I were them, I would drop the price to $299 for the fall if I can ramp up production. Increasing the install base without taking too much of a hit should be paramount for any console cause when you think of it a console is a 6 year service. The sooner you can get people hooked into your service the better.

Honestly, what i would really do is not just drop the price to $299 but also make a disc driveless SKU and sell that for $199. Then sell a blu-ray drive add-on seperately for $120.

Good for the console industry but I have a hard time thinking share holders will like that profit growth isn´t front and centre for Sony.

 Consoles aren't really about making a profit from the heardware and as it stands sony is already profitable on PS4 hardware. In creasoing the install base is the single most important for consoles. Larger (active) install base= larger profits across the board. You aren't just looking at more ppl buying your games, there are also more people paying for PS+, renting or buying movies, being exposed to your music services...etc.

So its not about them needing a price cut, its about them accelerating the console uptake. A price cut is only ever a bad thing if the amount of business you need from each indiviudal new buyer is too high for you to even break even. So if sony is profitable selling a PS4 now, dropping the price to $299 may mean that they take a $60 loss on every unit sold. That can be made back from anyone that buys two games and a controller, even less if one of those two games is sony first party.

Actually, as far as I know, League of Legends is the biggest game in the world.

The more PS4s they sell, the more they make off of software and PS+. Sounds like a solid strategy to me.

Wow, if goes down $349, that is quite tempting!

Agreed. The PS4's primary potential profits exists in the form of software and services. Gaining a extra few bucks from every PS4 at the cost of customers who could potentially make use of those services wouldn't be worth it.

Let's try and avoid those $200+ per unit hits though, ay Kaz?

Now that the order has been delayed...sony has a bit of a games issue. They really need to push ahead with the games...they have all the right IP's and studios they just need to do what they have been doing with the PS3.

I think Kaz is going to be a bit shocked at the underwhelming E3 sony will have (not that Kaz knows anything about games at all :P). With this increased focus on PS4...they really need to dominate. Its a big opportunity for them.

I think you could see $349.99 PS4 and XBox One this holiday season.

Sony has always had a champions leauge spot but you may be right that he is talking about increased marketing. If that is the case though I think its a mistake, PS4 marketing is fine just the way it is right now. Marketing is as much of an investment as biting a bullet on hardware losses to speed up sales. And overall its just better business in the console space to increase you install base and market shae as quickly as possible.

Then again, price drops is a tricky business. If sony drops the price to $299 and takes a loss of $60 on every console, then if they sold 20M consoles that year they would be taking a hit of whopping $1.2Bl lol. Though its easy to make that back from software sales and PS+ but thats still a lot. Reminds me of the PS3. If at $600 the PS3 was a breakout success, it would have made sony go bankrupt, since they were losing around $240 on every console sold.