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This looks like an excellent deal. KZ2 is essentially free.

At the same time one has to wonder how Sony expects to ever make money when they are giving away all of their best exclusives.

KZ2 is an especially troublesome case as it is considered the most expensive game ever. How will they ever recoup the investment?

Unlike Microsoft Sony does not have a great revenue stream from their install base. The title attach ratio is not great, they get no revenue for the Online service and struggle to make any money on accessories since all of the important ones are already included in the price.

And after all of that - Sony still loses money on every unit sold.



Prediction made on 11/1/2008:

Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox,  9M PS3