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And... about Sony's financial state?

"There are those who say that Sony "can't" drop the price of the PS3 due to costs associated with making it.  That's not true at all.  The added sales from a price drop would cause more software sales and therefore more royalities thereby offsetting the price cut."

You need to argue why this is true, otherwise the whole thread is pointless. Losing $100 per console would not be made up by game sales.