@Million: How exactly does that contradict what I said? I didn't say anything about the market's perception of PS3's price.

If this were a debate. I would have to judge in NJ5's favor.

Well it certainly won't help European sales so it will probably just negate the PS3s current WW lead until next year when Sony drops the price again. I'd say that combined with the better MS holiday line-up (by american standards) the 360 will significantly outsell the PS3 however the Wii being supply constrained already will sell out over christmas again so any drop in demand really won't matter.

Also you need to remember that PS3 sales over the last couple weeks are a bad indication of normal sales since it includes the recent release of a major title and the MGS4 Bundles which have sold very very well.

Probably why he let himself be crucified. Comes back three days later... "Who wants to touch zombie Jesus? C'mon, touch me now!"

1.  Lol, is the xbox 360 a PC.  No, but it's alot closer than the PS3 and not that much different than an xbox.

2.  I didn't say they weren't losing money on hardware.  But xbox will too with this deal.

3.  Not a promise they won't drop the price.  All they are saying is they want to be profitable and they don't want to focus on hardware prices.  I don't know how that corresponds with investors would be upset with a price drop.  The investors  hired them to do whatever is necessary for the business to succeed.  But Microsoft is forcing their hand here.  A $50 price cut this holidays is huge.  Microsoft is ahead 12M to 5M (approximate) right now.  If this price drop cleans up, and Microsoft ends the holiday up 21-22M to 8-9M then the PS3 is irrelevant.  Big name exclusives will either get the port treatment or skip PS3 altogether.  Which means piddling PS3 sales and they'll be lucky if they recover the investment on the PS3.  So while profitability now is great I think a response is necessary.  They made the PS3 too expensive.  It was a mistake.  But their best hand is to play their hand now and make the PS4 a profit from the get go.

NJ5 will be glad to know he has your heart :).  Better than win, but honestly what does this add?

Quotes are from Mr.Stickball's news story on the front page.

"1) At launch, the Xbox 360 costs approximately $525 in parts to make a unit - Roughly 24% over the price of a standard $399.99 USD Premium model.

2) By November 2006, that price, according to iSuppli had decreased by nearly 40% - From Approximately $525 per unit to $323.90 per unit for the Premium model, and under $280.00 for the HDD-Less Core model (which is now the Arcade).

3) Since then, Microsoft has made 2 major revisions to the Xbox 360, the 2nd heatsink, and the cost-cutting 65nm archatcture of the Falcon revision. According to DailyTech, the Falcon revision cut CPU manufacturing costs by 50%. "

The price of the console only needs to have dropped $80 in 2 YEARS for them not to be losing money.  I think M$ will be alright.

I think the original post had something to do with if the 360 price cut would have an effect on wii and Ps3 sales.

It most certainley will affect PS3 sales as the average american consumer puts price above all other factors. Also the 360 has the percevied greater value in NA at this time.

As for affecting Wii sales I don't see it hurting demand. The Wii will sell strong in the holidays and well in to 2009.

In a gaming system much of the perceived value is in the games people want to play. For Wii it's obvious people wanted to play Wii Sports (though happily moving on from there). For HD consoles it's everything else. If a person can spend $200 or $400 to play similar games. What do you think they would spend in a receding economy?