Wall Street Journal on Sony.... Ouch!!!

[arsenicazure]

I dont see logically, from a long term point of view how selling "lesser" PS3's is anything to feel happy about.

1. When you buy a console- you advertise the console. your friends and family play it, and eventually atleast one of them tends to pick it up. Not selling one means in effect they might have lost 2 or 3 units in long term sales.( in effect that means if you bought 5 games n so would they thats a loss of revenue on 10-15 units of software)

2. Fewer consoles sold= fewer games sold= less support from software publishers= fewer 1st party/and or/fewer 3rd party royalties

3. less consoles means less advertising on PSN/HOME

4. one console sold less means one more potential customer for wii360. So in effect doubling your competition.

5. less consoles means lesser mass manufacturing which means longer time recovery for components to get cheaper-which keeps the console expensive for longer.

6.Fewer consoles sold means fewer Bluray sales/ lower royalties from movies.

SONY should be selling at full steam to recover from their losses. M$ had over $1billion RROD losses but they seem to be on track to recover from it.

The more you sell, the more money you can make off it.simple logic, especially if people will keep spending on that product(games/services/movies etc)