PS3 Pricedrop in the near future? This Supporter Says No!

[damndl0ser]

dbot said:

Final-Fan said:
"for the period beginning in 2005" excludes the money-hemorrhaging of the original Xbox quite nicely.

And I think most of us can agree that there won't be a $100 price cut before next fall at earliest. $50 soonish is what many are saying.

The EDD(360) has lost 3.5 billion since 2005.

I am starting to agree with the op.  Sony has the ability to grow the gaming division into a healthy and profitable business.  They are losing market-share to MS, and I don't even think they consider Nintendo any more.  Nobody's catching them.  To some extent I think they learned a lesson from Microsoft's recent price drops.  Those drops haven't helped MS close ground with Nintendo, if fact it has little to no impact there.  Sure Microsoft was able to increase marketshare in relation to Sony, but they have hurt their profitability.  The EDD made 134 million on 1.8 billion invested the last quarter before the pricecut, and they made 112 million on 3.1 billion invested in the first quarter post pricecut.  Essentially, MS went from earning 7% on invested capital to earning 3%.  This is a division that also benefits from retail Windows operating system and office sales. 

If Sony can continue to sell the PS3 at their current pace and price, they should be profitable soon.  The only concern with the marketshare dilemna is will third parties continue to support the system.  Surprisingly, we have seen a number of third parties announcing exclusives for the PS3 recently.  So we haven't seen any price/sales fallout yet.

 

 

M$ was steadily losing ground to the PS3, so it was a sound decision to cut the price.   If the price cut would have caused them to operate at a loss,  I am 99% certain it wouldn't have happend.  M$ will end up making their profits on the price cut this year after those new customers start buying Software and purchasing live.  The difference between M$ and Sony's proposed price cut, Sony is already losing money and instead of squeaking through with a small profit, it would just through in even more loss.