Would a PS3 price cut do it?

[kars]

kber81 said: They lost most of their critical production capabilities - are you for real? There is nothing wrong with the fact they buy displays from Samsung. Everyone buys from Samsung or LG-Philips. No need to provide own technology. It's cheaper. Do you think Eizo is going to fall because they are using Samsung panels?

Yes, it's cheaper but on the one hand, but suddenly only a fraction of the price stays in your company. Your earnings might look better, but in fact you lost internal knowledge. Other companies can buy the same displays and it is much easier for them to compete with you. Their tube TVs were a name of their own, but now their biggest contributions is the elctronics part and its brand name. In the stores everything looks fine, but in fact only a fraction of the price stays in Sonys pockets. And this increases the relative size of their games business. They can no longer compensate losses of the games business as easily. And in fact a very important factor nowadays bad news in the game market have a much bigger effect on your share price and puts more pressure on your management.