Sony are breaking even on the 120GB slim, and making profit with software and on the PSP, PSPGO & Playstation 2 + all there software
and the introduction of the 250GB Slim which they make money on
Microsoft talking out there ass again i see lol
No they aren't
Slim hardware is losing money
I think that will be offset by the 250 gig model. Can you imagine how well PS3 would be selling if they bring the 120 down to $250 when the 250 gig comes out?
Another PS3 price cut, lol
I don't think it would be that funny for the other consoles. It would put PS3 back within $50.00 of Wii, the price difference that existed before Nintendo saw how successful the PS3 was at being at $299 and caused Nintendo to have to lower the Wii's price in response, so they would have to lower the Wii's price by another $50.00 and that would mess up the pricing strategy they have for their handhelds, and the 360 has shown that even with a $199 Arcade and a $299 Elite they can't beat the PS3 worldwide, so if Sony brought the PS3 down to $250 and had even stronger sales, Microsoft would have to lower their prices even more to keep up.
Is it really a win for Microsoft if at the end they have to bring the Arcade down to $100 to guarantee a win? I don't think that would look too good to their investors.
Wow... you really fail so hard at analyzing. The Wii hadn't had a single price drop in its entire 3 year life span while the 360 and PS3 each had a handful. Then it only had to cut $50 to boost demand again.
And you say the Wii cutting price $50 would mess up their handheld pricing structure? What about the PS3 cutting $50 which you think would be all too easy? That'd make it equal to a PSP Go.... totally messing up their handhelds.
Also, to your last statement, Microsofts console costs a lot less than a PS3 to produce. They could easily afford another $50 cut now to take back sales over the PS3. And if in the end they have to cut the arcade to $100 in a few years (since Natal and "Sphere" will interupt price reductions for a good year or so), it would still be a win for Microsoft because they would have been profitable on the Xbox brand now and outsold their main target achieving their goal. Making next gen a heck of a lot easier, especially if Natal takes off like it seems it will. Their "NextBox with Natal+" would have all the audiences covered from the start and a higher last gen userbase to draw on than the PS4. That seems like a very nice place for investors to be in. Oh and really, who invests in MS for their console market anyways? No one, so stop your bull crap. They invest because of the MS Software business stronghold.
EDIT after seeing your reply: And no, MS is not losing money on either 360 SKU at this point.... Unlike Sony, I hear