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NJ5 said:
Another thing... It's very hard to fund a price cut through software sales...

Let's say the PS3 sells 9 million this year without a price cut, and 12 million with a $100 price cut. This means the 3 million userbase gained from the price cut will have to spend around $1 billion in software to compensate for the lost revenue from the hardware side. That's $333 of software per gained user, not counting retailer margins.

Your numbers don't make sense. Do you realize you are insinuating that Sony is going to be losing $333 on every console sold at $299.99. So by your numbers, Sony is currently losing over $233 on every system sold.

I don't even think anyone is acutally dillusional enough to believe that.