Non Sequor on 01 October 2007
It's pretty obvious that they desperately need a price cut. But I don't see how they can afford one.
As I see it, Sony is pretty much screwed. If they keep selling at a loss forever they'll need an absurd attach rate just to break even. But if they wait for their costs to fall a bit before cutting the price their market share will dwindle to nothing.
I think that Sony expected there to be a lot more early adopters for the PS3. If there had been, they could have increased production for the expensive components, the Cell and Bluray drive, and reduced their unit costs. This would in turn allow price cuts which would allow more sales. It's a nice enough plan if you can pull it off, but if it fails, it's going to fail catastrophically.
"Ho! Haha! Guard! Turn! Parry! Dodge! Spin! Ha! Thrust!" -- Daffy Duck
