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

[cleveland124]

NJ5 said:

@cleveland124:

1- I know Sony's overall profits fell, isn't that a reason for them to be cautious? They even revised their profit forecast down by $500 million, even though it was already substantially lower than previous year's profit. Have you really looked at their latest fiancial report? I can't stress this enough: things are very tight at Sony's HQ this year. Their stock price is near a 5-year low, profits are down, their cash cows are getting thinner.

2- Sony's game division is not small, in fact they contributed a larger portion of Sony's overall profit during the PS2/PS1 era (a few billion dollars).

3- Those things you posted about Microsoft weren't promises to investors, as far as I know.

4- Want to do a bet?

1 - http://www.nytimes.com/2008/07/18/technology/18soft.html?partner=rssnyt&emc=rss Microsoft profits are tanking too.  Shouldn't they be more cautious?  Or is it the whole sell hardware at a loss, make it up on software thing working?  Maybe it could work for the PS3 too.  I wish they hadn't spent so much on PS3 hardware.  But they did, so now they have to move forward for the best plan for their product.

2 - Their game division is profitable and will likely still turn a profit in 2008.  If you think think sitting back and letting Microsoft dominate the market is going to help their profits, I think you need to think again.

3 - Okay, show me the article where they promise that they will not cut costs.  All I see is they are saying they don't want to cut costs and will focus on the profitability of the company.  Not that it makes any difference.  Yes, investors have been lied to by management before.  It's called responding to the market.

4 - I don't do internet bets.  But since you do, do I need to conceed the point since you are willing to put up money?