Again my point which was missed was every single PS3 that is sold to date has made Sony lose money. They lost over $3Billion on it in the last two year. If Sony make $900m a year (according to forbes list) it does not take a genius to work out that $900m is a lot lower then $3B. How long can a company in todays world really go that long leaking money like that? If you look at the actual situation you see that Sony are having to cut costs a lot, they have already said they are sacking a 5th of their workforce (18k), selling factories and so on. If your company is losing money that means you have to borrow it from either backers or the banks. If the share price has fallen to its lowest ever falling over 76% in the past 6 months alone how long until the backers think about not putting their own cash in anymore? Then add to that the world financial problems of the world with the banks in every country of the world will mean banks will not lend money to each other so why would they lend it to a company that is losing so much money?! That is business suicide.
The reality is Sony is in a very dark place right now, the same as so many other companies around the globe. It is simple maths if your outgoings are higher then your ingoings it is just a matter of time before your so far in the minus you wont ever get back to zero. Sony are not in a position to cut the price of the PS3 simply because that would mean even more loses. If they are losing over $50 a PS3 they will not want to increase PS3 sales and lose even more money. And if they do cut just $50 to be losing $100 on every PS3 will most likely mean they go bankrupt. Imagine it like this. Say Sony do cut $50 that means every PS3 sold = a loss of $100. If in 2009 things stay as they are and they sell 9m consoles with the $100 loss would mean a loss of $900m in just a year.
The point people miss so much is that Sony is a shareholders business, they are not fanboys. They want profit and are yet to see any on the new generation. So what this and other financial analysts is really no brainer. As things get older they get cheaper to make. The question then becomes how long can Sony go on bleeding money? The 360 and Wii are making profits and have for well over a year. They can both drop prices further and still make money. If Sony drop their price of the PS3 and instantly the 360 and Will follow suit that could seriously damage Sony for the longterm like with Sega. I dont think they will risk that at all. Money is whats important not saying your first place. Because neither PS3 or 360 will ever be first place this gen.
