| NSS7 said: I don't think Sony can afford another price cut. Each PS3 sold they lose $40. If they drop $50 they will lose $90. Let say they sold 500k PS3 this month with $40 loss for each console. Total Sony lose about $20 million. After $50 price cut PS3 sales might increase to 800k with $90 loss each. Total loss $72 million. Taht 3.5x more loss. The only way they can cut the price is when PS3 production cost below sales price or PS2 and PSP sales increase dramatically. Software sales cannot cover all the lose. |
I think the general concenses is that Sony would cut the price at the same time as the intro of the slim PS3 with 45nm cell, thus in effect keeping the same unit loss as they currently have. The question is, which course of action is more profitable, in the long run. Personally, I think WereKitten has it licked. Although this years losses will increase as a result, the long term increase in software and accessory sales will generate more profit/less loss, in the long run. It'll also keep 3rd party publishers happy, which is also critical for their continued support of the PS3 platform.
Yes, Sony is hurting, but for the umpteenth time, this is the first yearly loss in 14 years for Sony, they aren't about to go bankrupt tomorrow. Yes, they have a lot of long term debt, but they've also got assets worth many times that. AMD is a very good example of a company that has sustained several years of unprofitability and not gone under, mainly through investments from other companies/rich Middle-Eastern oil barons. Sony is nowhere near that level, the sale of shares to raise capital is nothing new in an environment where credit is expensive. Its not a sign of Sony's imminent demise, as so many fanbois feverishly think/hope it is. Including ones with apparent business degrees.
