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The exchange rates might actually save the PS3. They might actually see Sony curtail production. Initially producing less will mean they lose less. However that might also prevent a price cut. The ideal situation if your a dirty rotten bastard is for Sony to have a repeat of the 2006 supply debacle. That was one of the fundamental reasons the console saw two drastic price reductions in the first year. Sony produced to many units that did not sell so they began to back up the channel, and began to lock up a large amount of liquid assets.

Sony had one of two choices. The first was to suspend production which would kill their strategy, or they could lower the price to get the channel moving. Even consoles sold at a drastic loss gives you access to the assets that were once locked up in inventory. The reason I say you have to be a dirty bastard is, because if Sony has to eat that kind of loss again early in the next year I have little doubt that the PS3 would be shut down.

Well it should be interesting to see how Sony addresses over production. Given the current economy I just cannot imagine them being able to produce as many machines as they were. They behave responsibly it makes a price cut far more unlikely. They behave idiotically, and churn out the same number of units, and I have little doubt they will pile up in the warehouses.