i didn't say their motive was to make loss this year.I am just saying that if they predicted and prepared this year to be a loss making year,their must be a reason behind it.And hence they will be trying to make PS3 available to more customers.

Whilst sony would love to sell 30 trillian consoles there first aim to is be profitable.
If sony are smart they'ld start with $349 with a further cut down to $299 in november.

$199 is stupid financially and mightn't work, look at MS their most sold model sells for that price yet they shipped only an extra 100k consoles over the last 3 months vs a $399 console!!

God these rumours keep on getting worse

We all know a $249.99 PS3 will trigger the grand start of the Free Xbox 360 (*requires 2 year commitment to xboxlive gold)

it's not even remotely possible... first Stringer said around/about 70 percent... which could be 60-69 percent and not actually 70... it's more likely that the actual production cost are around 300 for the system alone. A controller and the rest of the components add another 30 bucks or so to the cost of the system. Then you have shipping and tariffs in some places. At best you get a 350 dollar cost to Sony. Now they sell it for 345 to Walmart and Gamestop and such. That's a loss if they just do the 50 dollar price cut. The actual higher end model may cost 10-15 (cost diffrence in 80 and 160 HDD is negligible) more to make and ship so they make money on that system, but it's not the better selling system and wont make up the difference. They will be better off this way IMO because their loss/console is smallish and they should easily make it up with software. If they do the much better 100 dollar price cut things look much worse finacially for sony, but they'll see a nicer Christmas if Microsoft doesn't 1up them with a 150 dollar 360 using the Vahalla GPU-on-CPU chipset.

yeah now caomparing it with the 360.

For yuor clarification,all of the hardcore MS fans already have a 360.Most of the people now buying the 360 are causuals and buying it cause it has a low price.

In PS3's case alot of hardcore fans still has to buy it and are waiting for a price cut.Its brand name is much more stronger than the 360 overall.

Actually, for both your clarifications, the $300 Pro 360 is the top selling model, not the $199 Arcade.

Also, it is the PS3 who lacks any future audience.  The majority of the PS2 audience was casual.  All the PS3 has this generation is Hardcore because casuals go for price first.  That's why the 360 is selling better.  It gets both Hardcore and Casuals