I'm not too sure these price reductions are really comming from Sony ...
While it is not the best long term strategy, getting people to come to your store to buy their PS3 because it is on sale below your cost gives you the opportunity to sell them a game or two, a couple of Blu-Ray movies, a couple of controllers, and a HDMI cable which are all much higher margin products; and (hopefully) you will recover the money from the sale. Even if you don't make a lot of money off of this, at least you will have reduced your inventory which increases the ammount of cash you have on hand and protects against future price reductions.







