We must not forget that Sony also acquired seven hundred million dollars in debt to support the PS3 launch. They basically borrowed from a number of financial institutions. This is rarely factored into the overall analysis. So up front the PS3 has probably cost Sony four billion dollars. Without the profitable PS2, and PSP Sony has probably dropped at least five billion dollars on the PS3.
Some say Sony will have to reduce the price on their console to be competitive, but given the current market being competitive cannot be a primary concern for them. I think a price cut will only come once Sony has exhausted this current market position. Basically waiting until supply exceeds demand by two million units. At which point Sony must reduce prices to free up the capital locked into physical assets.
I do not view a price cut for Sony being a specific date, but more specifically a certain margin on a spreadsheet. They will work with what they have until it is no longer tenable, and then reduce the price.
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