Sony starting permanent European PS3 price cut?

[NJ5]

JGarret said:

NJ5 said:
If true, this goes against my predictions but it will be amusing to see Sony's financial contortions to deal with the consequences of this price cut.

 

What predictions are you referring to, NJ?

Regarding permanent PS3 price cuts, I'm not expecting any until SCE can be profitable at the same time, which I don't think will be the case before late 2009. Sony's CFO stated in their financial report that they expected profitability late in the fiscal year, but that has surely been delayed by the euro/dollar weakness.

 

kber81 said:

NJ5 said:
If true, this goes against my predictions but it will be amusing to see Sony's financial contortions to deal with the consequences of this price cut.

Price cut consequences can be temper by software. Easily. Arcade definitely cost more than $199 to manufacture. Despite this I don't expect to see Microsoft in red.

Personally I believe Sony has  plenty of time for a price cut. Sales are good. Sony sold more in two years than Microsoft in same period. I think they will also outsell Microsoft in third year.

This gen one system is not enough for most developers. No1 is going to ignore 20 million PS3.

 

I don't think Microsoft will be in the red due to the price cuts, but remember that they have three models and they can recoup any potential Arcade losses on the Premium/Elite models. Software also helps of course, but a 100 € price cut means you have to sell an additional 5-10 games per console to break even. That's a lot of software.