Microsoft's response to a PS3 price cut?

[amirnetz]

If Microsoft drops the price by another $50 then it will double its sales.

With a price tag of $150 it will take all of the PS2 sales and will even steal share from the Wii. It will become an impulse buy.

While the PS3 will remain double the price of the 360, it will approach the Wii pricing and will start taking share from Nintendo.

But all of this is only academic. Sony must start making money. Not just break even on hardware but to actually make money to cover the Electronics division loses. The business model of "sell at a loss today to make it up on games and accessories later" does not work well for a company that is bleeding billions. Many billions.