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jman8 on 31 July 2007
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endimion said:
mrstickball said:

If this person is legitimately true, then the next part of his statement (which echos what I've been saying) is also true. He basically stated the pricing info 2-3 days ago. In addition, he also said that MS is clearning out old pre-falcon models at this price. Once the old X360s are DOA, MS will re-launch the new 65nm X360s just after Halo, but before GTA, and knock the X360s down another $50, and maybe even $199 for the cores..


it's exactly what I'm thinking and I think everything is going to be limpid either after the LGC or the TGS... and that's when the Xmas race is really starting... and that's why I don't see the speculation on a PS3 come back being possible... Ms won't let it happen and Sony can't afford a cut big enough... i'm not even sure if PS3 is already making profit!!! are they ??? anybody can answer me seriously ???

where MS is doing profit now and with the falcon they can allow themself to cut a bigger chunk... well it's my opinion but I hope i'm not wrong and I didn't do 7 years of marketing studies for no reason lol...

Nope, Sony's not making a profit. They said they're gonna be breaking even on the PS3 hardware by March '08. But that figure doesn't matter. The only number that matters is whether the PS3 business as a whole is generating a profit. That could take longer (or shorter).

The same goes for Microsoft. Sure they might be able to manufacture the 360 for less than they sell it for, but who cares? The fact of the matter is that they lost $2 billion on the Xbox business as a whole last year! So as of right now, neither the PS3 nor the 360 is profitable, which means MS may not be able to justify making bigger price cuts like many of you think are coming soon. 

On the other hand, Sony may be in a better position than MS to make dramatic price cuts. Sony doesn't have 7 years worth of massive billion dollar losses to deal with like MS. They also have more diverse gaming business to fall back on; the PSP and PS2 are selling rather well and can help offset many of the losses as a result of the PS3. 

 



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.