Quartz said: Microsoft at that point probalby could at the afford the losses on the xbox at that time. But the significant drop in shares for Sony in the past, and it's drop in company value it is probably a wise choice to hold out on the price for the PS3 until parts are cheaper. At this point I don't think Sony wants to keep bleeding money for every PS3 they are making at this time.
The reason they price cut was because PS2 price dropped and they knew they would not be able to keep their system alive at 300 dollars and compete against the PS2, and also the gamecube which was also cheaper. WAS I THE ONLY ONE GAMING BACK THEN? I don't see how none of you remember this. Xbox was easily losing more than 200+ dollars a console when they dropped the price from 300 to 200. http://moneycentral.msn.com/investor/charts/charting.asp?iax=1&Symbol=SNE Huh, that's interesting. I wish I had bought Sony stock back in November, I would have made over a 20% gain in 3 months. You know Sony is profitable as a company, Sony Pictures, Sony Financing, Sony Electronics, and Sony Gaming. Just like Microsoft they can afford to take massive losses cause they are a massive company. Microsoft lost 4 Billion dollars after all software sales and hardware sales on the original Xbox, that certainly didn't disaude them. And as I already pointed out, they've taken steps to lower the part costs this year, in the range of 100+ dollars. 65nm technology saves them 40-50 bucks, the EE chip saaves them 27 dollars, and reduced price of blu-ray laser diodes should be at least 25 bucks. Yes Microsoft can afford to do a lot of things, like lose money on Zune, lose money on their search program (competing with google), lose money on Xbox. But so can a company like Sony. And the only thing they are losing any money on right now is the PS3, Financing is profitable, electronics are easily profitable, the picture company has been one of the most dominant at the box office the last several years.