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Strictly speaking they can afford it (i.e. they won't quickly go bankrupt because of cutting the price). It is however surprising that they're going to cut prices when they told investors they're focusing on profitability.

Sony has stated in their financial report they're not going to be profitable in the games division this fiscal year:

http://i43.tinypic.com/m913lh.jpg

So IMO, this forecast and upcoming price cut is a bit underhanded considering Sony's promises to investors. Especially when they're going to mix up SCE's financial results with Vaio and Walkman which might be quite profitable.

 



My Mario Kart Wii friend code: 2707-1866-0957