editorial: "april 09 ps3 price cut almost guarenteed".

[Millennium]

Baggins said:

deathgod33 said:
more ps3's sold then more ps3 owners then higher software sales. losing money on hardware is irrelevant

Well, fancy that! We know this, the only people that don't are the Sony fanboys who are in some kind of denial and don't understand the basics of the console market - Since a long while consoles have always been loss leaders.

Actually, this isn't true. This predatory and extremely risky move was pioneered by Sony, and only Microsoft has ever copied it. It worked twice for Sony and once for Microsoft; I will admit this. But risk is risk, and sometimes you get burned, and that's exactly what is happenning to Sony right now. They can't risk losing even more on the PS3 than they are right now, or they will bankrupt themselves long before the increased software sales have any chance of saving them.

Loss leaders are a long-term strategy, and the long term is a luxury Sony does not have at the moment. They need something that works much faster than a price cut, and they need something safe, and the problem is that this doesn't exist. This is why we say the PS3 is doomed: the usual strategies can't save a company in Sony's position, and there simply aren't any viable alternatives.