Assume for the sake of this discussion that hardware sales increase revenue streams for Sony in two ways: increased sales of software and increased sales of blu-ray movies.
I'm sure I'm oversimplifying things but lower the price, the cost decision then becomes a matter of offsetting any losses incurred through sales of hardware, by increased revenue streams in the two aforementioned areas.
Is that possible by Q2 of next year? Unknown, though I'd suggest that if the 360 handily wins Christmas and first quarter next year, they will force Sony's hand.
The underlying assumption of course is that sales of the PS3 lag behind the 360 until a price drop...that turns out false and the conversation is moot.
Wait...did I even make a prediction??
no.
crap.
