Kaz Hirai : it's important Sony does not allow Nintendo to 'run off alone`

[Branko2166]

S.T.A.G.E. said:

Branko2166 said:
As a fan of Sony I would like to see them sell more consoles by lowering prices. However I recognize that it's a business and as such Sony has to take decisions which takes into consideration their profit margins. And as some people have pointed out already we are now entering the holiday season so they will sell a good amount of consoles regardless. The best thing to do for the health of the company is to stay the course until next year and when the time comes deliver a $100 price cut.

 

Sony wasn't really worried about profit margins. It was the after effect of the launch that got them really worried. They knew it would be bumpy. Obviously they had an asking price of $599 for a machine that was truthfully worth by parts about $1000+. They knew they were going to lose money from the get go to break in the product, so they could start a see saw effect with the Blu Ray DVD player market. Once they got HD-DVD out of the way Sony finally started to focus on the games. By the time Sony focused on their system instead of Blu Ray, they were already over 2 billion in losses.

They have incurred substantial losses thus far so it will be very interesting to see how they do this quarter. After all they managed to have a small profit last quarter.