Will Sony pull off a PS3 price cut?

[radha]

Dryden said:

The economic crunch isn't going to hurt Sony's gaming division specifically, as diversionary spending (feeding our vices) usually goes UP when the economy is down, not the other way around. Alcohol and tobacco were recession-proof at retail for the past 50 years. I think video games will show to be recession-proof for the next 50. Just look at October sales -- the industry was UP 18% over last year* despite the economy.

* http://biz.yahoo.com/ap/081113/video_game_sales.html?.v=4

Sony faces stiffer competition from cheaper Asian manufacturers in their other CE lines, particularly TVs, and there could be a stall in the growth of Blu Ray, both of which will hurt Sony tremendously. The games division, despite recent losses, is arguably in the best position to weather the current storm. I think they maintain the status quo and keep the $399 price tag for the time being, then look to shed $100 post holiday, likely in the spring around April or May 2009.

The minimal, short-term bump in sales would not be worth the additional losses. The "magic" price is the sub-$200 range. Sony can't get to $199 anytime soon, so I don't see the point at rushing headlong to $299 or $349. Anecdotal, word-of-mouth evidence suggests Sony might pull in more casuals and move some systems thanks to LBP. If that's true, Sony needs to milk sales at $399 for as long as the market will bare.

i dont think casuals will pay 400 for a console