HappySqurriel on 28 July 2007
As much as analysts and fanboys like to make comments like "Sony is losing $200 on every PS3!" no one's business strategy is that insane.
Sony picked the $600 initial price point because they knew they were going to get some massive manufacturing cost reductions immediately and they could afford to sell the PS3 at that price for 12 to 18 months (with most of it being at a small loss or profit).
The area I think Sony potentially miscalculated is the rate at which they will be required to reduce the price of the PS3. Sony has (typically) reduced the price of their system on 18 to 24 month intervals and usually doesn't push large price reductions; as a guess I don't think they anticipated being at $300 until 2009.
