Will Sony pull off a PS3 price cut?

[Dodece]

I think a great many posters need to smarten up, and look at what is happening around them. Sony can no longer loss lead with their newest console. The console must not only be self sustaining, but it also must show real profitability for the company. The reality is that most of the other divisions at Sony are going to be unable to cover losses in the gaming sector, and more to the point many of them are going to be economic losers. So the PS3 must actually help those divisions defer their losses.

I think that posters need to get a handle on the fact that not only will the PS3 probably finish third this generation, but that Sony is not only resigned to this fate, but also accept this fate. They have no necessity to come in second place. Their necessity is to justify their existence. Sony has actually lost closer to five billion dollars on this console. Given the size of the company that is a substantial loss. Sony not only expects some return on their investment, but they need that return.

You know its ironic to discuss how Sony will find a way to sell this console at a meager profit. When that increases the likelihood that Sony will dissolve, or sell off their gaming division in full or in part. Yes I suppose I was the first to say it. Sony could very well kill the product line. That is where your thinking should be. Not how Sony can sell more consoles, but how can Sony justify the existence of the division to their investors. How Sony can avoid having to scrap a division to make the bottom line.

The gaming division will be a very tempting target for the company to liquidate assets from. All those developers they have snatched up over the past few years. With two competitors riding high who might actually pay something close to real market value. That is what the gaming division needs to worry about. They need to worry about being slashed to ribbons to feed the giant. Obviously the best way to avoid that is to feed the beast with profits.