Dreamcast, I don't think Sony can lower the price. They are already taking a bath on the PS3. They are losing over $200 per console sold. They'd have to shave a couple hundred dollars off of the PS3's manufacturing cost just break even. Sony has put themselves of at the mercy of their competitors when it comes to pricing. They have to be reactionary where as Nintendo and MS can proactive with pricing. Nintendo and MS are able to drop their prices and make a profit NOW. They are using Sony's high price to pad their profits. Nintendo could have sold the Wii for a profit at $200 last holiday and MS could have sold the Premium 360 at $350 for a profit. When your competitors have the ability to sell their products between $500 (360) and almost $700 (Wii) cheaper than your manufacturing costs, you are in trouble. In other words with the money it takes Sony to manufacture one 60GB PS3, MS and Nintendo could manufacture two premium 360s and one Wii. I think the money they are losing on the PS3 is the real reason they are unable to lock down exclusives. Sony doesn't have the capital. They took out an 800 million dollar loan just to launch the PS3. The PSP hasn't exactly padded Sony's cash reserves either. As much as Sony wants the PS3 to have a "ten year" life span, I just don't see that happening at this point.
