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Holy $hit $999.99? you have got to be kidding. not only would they not sell any consoles to make development money back ,but then there would never be a million seller game to make them money either.

In my opinion Sony could sell a non EE PS3 60gb at 399.99 and sell a shit load. There is no contest between a 60 gb PS3 and a 20 Gb 360. The PS3 has way more features for your money. Nearly all the $ Sony will lose on System sales will be made up by the large amount of 1st and 2nd Party games sell 2-3x as many units due to a installed base of at least triple of what they have now. Hell Resistance and MotorStorm alone would have sold almost 3 million if sales would triple and everthing after 1 million is profit .

With the focus Sony has this gen on First party titles I would have sold the system as cheap as I could . to sell as many of my games as I could. The game will make the PS3 profitable but they need more machines in peoples hand to push those game. Sony definitly hit a price drop at the right time though many 1st party games are coming out and coupled with a price drop. Could be a good time for them