You do realise a lot of that loss is writedown of asset/book loss and not actual loss don't you? They're not actually losing that money from their cash.

New console versions and price cuts are not as black and white as people want to make them out to be.  I got my original PS3 Fat with backwards compatability for 600 or whatever it was at launch.  I bought my most recent 120gb PS3 for 160 or something a couple years back.  Did the ability to play PS3 games become cheaper as the consoles life went on?  Yes.  Did you get the same or greater value (minus the backwards compatability thing) by buying a cheaper version later?  Yes.  Do you define that as "price cut"?  If so, yes you got a price cut.  If you don't, then you paid less for a cheaper version.

As long as the sales of the PS4 stay at these heights there is no reason at all for SONY to drop the price. Nintendo is probably much more of a candidate to drop the price to reestablish the price difference between them and their competitors.

A 500$ to 350$ in 2 steps in a 1 Year Timeframe maybe ain't no bargain binning, but it is an acknowlegement of Playstations superiority in sales and a last ditch ressort to try and catch up to them. Heck, they didn't even manage to pass the always doomed Wii U yet in sales (which ain't shipping!) and possibly won't even do so this year even with 2 consecutive price drops.

They are actually cashflow positive, and likely will be for this year. It's their write downs and other accounting stuff that puts them into a loss (previous quarter operating income was positive). So in the short term they can probably afford to take a small hit on cashflow, what's another 100 million of red ink when you're already looking at over 2 billion for the year. As long as it won't bankrupt them, which it won't being more long term in strategy with PS4 is a good idea. Shareholders (the ones who are left) can be easily sold the line that PS4 is killing it right now, so ensuring continued dominance, esp in the very lucrative US market, is worth squeezing the margins over the next 2 months.

Not that I think they will with an actual price cut.

That's how I see and I agree with you. The problem is I doubt the average consumer see it this way. All they see is a product going from $500 to $350 and now without the kinect if they even know that much.

does ps4 need a price cut with its huge success?surely,no...There s no threat for it!

Absolutely no reason to. All they need to do is get a GTAV bundle in the West and November will be September all over again.

I hope not

This post raises so many abstractions and questions about what is considered value that it can't possibly be the right answer.

What if a console released with a game, but then didn't and they dropped price? Is that less or more value? Back to the drawing board with this one.

xb1 went from 500 to 350. With or without kinect (which we'd really have to quantify in value, seeing as how sales have actually increased, indicating that kinect is either value-null or a negative).