Predict the effect of the 360 price drop. Will it be outsell PS3 again?

[NJ5]

reask said:
Sonys problem is the longer this goes on makes it more difficult for them to catch up.
I predict a ps3 price cut.
They have no choice really.

No price cut before 2009. It's pretty clear.

Here is what Sony said to investors:

SINGAPORE -(Dow Jones)- Sony Corp. (SNE) Chief Financial Officer Nobuyuki Oneda said Friday the company has no plan to reduce the price of its Playstation 3 game console.

"Our strategy is not to sell more quantity for PS3 but to concentrate on profitability," Oneda told investors at a Nomura Asia Equity forum in Singapore. "Our plan is not to reduce the price."

Source.

Furthermore, they said they only expect to achieve profitability towards the end of the current fiscal year (i.e. close to March next year). Emphasis mine:

The minimum, I mean, at least over 10 million units has to be sold to create a platform. So therefore fiscal '07 even though that our cost of the hardware is much higher than the price itself, we have to sell close to the 10 million sets in fiscal year '07, but this year, our strategy is that we should focus more Internet-related service operation to increase the... to increase the internet operation, to increase the software rather than drastically increase the quantity by adjusting the prices. If you consider the long life, long lasting lifetime of the PS3, this year we don't think it is a time to aggressively sell the hardware quantity this year. That's our strategy for this fiscal year.

Source.

Sony's investors are not going to put up with more big PS3 losses.