Sony Hints It May Cut Prices on PS3 Game System

[NJ5]

Munkeh111 said:
@ NJ5, aren't they hoping PSP sales, which I assume will produce profit, and increased software sales will help offset that. Now we are into 2nd or even 4th games for Sony developers, the costs are going to be lower, with the massive cost of Killzone 2 gone (it cost them nearly as much to make 3) that should help somewhat, but they are still likely to make a loss

I suppose they took that into account in their forecast. There are positive things happening in Sony's gaming business, like PSP and PS3 increased userbase / decreasing costs, but there are negative things as well like PS2's decline and the need for a PS3 price cut to attain their sales goals. The negative factors are winning for the foreseeable future.