http://www.bloomberg.com/apps/news?pid=20601068&sid=a.mJ00L822UE&refer=home

^^this

It all depends on whether they want to get a narrow second place or a moderate third.

i dont think casuals will pay 400 for a console

I think a great many posters need to smarten up, and look at what is happening around them. Sony can no longer loss lead with their newest console. The console must not only be self sustaining, but it also must show real profitability for the company. The reality is that most of the other divisions at Sony are going to be unable to cover losses in the gaming sector, and more to the point many of them are going to be economic losers. So the PS3 must actually help those divisions defer their losses.

I think that posters need to get a handle on the fact that not only will the PS3 probably finish third this generation, but that Sony is not only resigned to this fate, but also accept this fate. They have no necessity to come in second place. Their necessity is to justify their existence. Sony has actually lost closer to five billion dollars on this console. Given the size of the company that is a substantial loss. Sony not only expects some return on their investment, but they need that return.

You know its ironic to discuss how Sony will find a way to sell this console at a meager profit. When that increases the likelihood that Sony will dissolve, or sell off their gaming division in full or in part. Yes I suppose I was the first to say it. Sony could very well kill the product line. That is where your thinking should be. Not how Sony can sell more consoles, but how can Sony justify the existence of the division to their investors. How Sony can avoid having to scrap a division to make the bottom line.

The gaming division will be a very tempting target for the company to liquidate assets from. All those developers they have snatched up over the past few years. With two competitors riding high who might actually pay something close to real market value. That is what the gaming division needs to worry about. They need to worry about being slashed to ribbons to feed the giant. Obviously the best way to avoid that is to feed the beast with profits.

Do they want to? No.

Will they before early next year? Very probably not.

Would a price cut help? Oh, yes!

Catch 22 for the gaming generation - they can't increase rate of marketshare attainment and software sales because they can't cut price, and they can't cut price because they don't have enough marketshare to sustain it with software sales.

Bet they're having some fun internal meetings since the 360 started outselling the PS3 WW.

no price cut this year maybe a 80g bundle for US ps3 80g plus LBP or MotorstomPR or Rachet&Clank or just a good bluray movie since all other regions have a good 80g bundle right now

Defenitly 50$ price cut early next year if were lucky another 50$ at holiday 09 or just one big 100$ early 09

I posted this on another forum thread and thought it is even more relivant here.

Price kills!  The reason for Sony's problems all begin at price.   And there is no easy way for them to lower the price.  Most people think that it is a simple decision for them to cut prices by $50-100 and then start selling away at a bigger loss.  The reality of the situation is much different than that.  Every time the PS3 has made a cut in price the other stand alone Blu-Ray players have had too as well.  This is a catch 22,  cut price and drive away stand alone manufactureres or keep the PS3 high and lose sales.  I would imagine these stand alone B-ray builders have some sort of contract with Sony to keep prices at a reasonable rate compared to the PS3 in order to sell players.  So Sony will lose not only X amount of money for each PS3 sold but also the money they have to give back to the stand alones.  Which would seem to be a hell of a lot.  No price cut for some time IMO.

What does that mean for the PS3?  I don't really know but it certainly isn't good.  I like the PS3 and the main reason I bought it was for Blu-Ray.  But it is also the main reason it will always be a distant 3rd place.  Of course this is all my humble opinion, which may or may not be worth the time it took to read this.  Toodles and have a good day. :D

That is all.

You're opinion make some sense.

I start to believe that Blu-ray could be turn in a heavy weight for Sony,don't be able to reduce PS3 price for this as one of the main reasons.

We have to see the Blu-ray performance in sales for the holiday's time,the economy is in bad shape and everyone is lookingfor bargains, a cheaper DVD instead an expensive Blu-ray.

For Sony's sake I hope this don't going to be the case.

The Sony BDP-350 is now only $249, add an XBOX360 Arcade for $199 and that comes to $449 or you can get an off brand BD player for $199 or less.

The BD portion of the PS3 in no longer a real selling point.

I don't think it ever really was. 1080p movies on BR disc is nice and all, but more DLC and less DRM is the future.

The PS3 would've been better off (and cheaper) with a run of the mill DVD-RW drive, TV tuner and PVR functionality.

I read somewhere that PS3 is still the leading Blu-Ray player.  And for the most part that will be the case for some time.  Until B-R players come down below $150.  So I would imagine there are a lot of other people like me buying a PS3 mainly for the B-Ray still.