Which will get the price cut first PS3 or PS2.?

[Blappo]

A PS2 price cut depends on how much profit they are generating per unit. A reasonable price drop would be down to $99 which is a $30 reduction.

If Sony currently makes $60 profit/unit they would then make $30 profit/unit after the price drop. 50% (1/2) of their current profit would mean they would need to sell 2x as many units after the price drop.

If Sony currently makes $90 profit/unit they would then make $60 profit/unit after the price drop. 66% (2/3) of their current profit would mean they would need to sell 1.5x as many units after the price drop.

This is a very simple model that does not take into licensing fees from games and profits from accessories. However, the number of used games available for the PS2 and the shrinking retail presence of the PS2 means that Sony will profit less for each additional PS2 sale less than they would have even 2 years ago.

IMO - The PS2 may never get a price cut until Sony wants to unload stock when its discontinued. However, I'm not sure if the PS3 will get a price cut this year. So its probably a coin toss.