Is the 40gb really a price drop?

[Dodece]

I would say yes there will be a true price drop. I would also say it will happen after the holiday season. However I will clarify my view up front. I think the price drop will be the last move Sony will make this generation, because that will be the clearance to empty out the warehouses. Just after they have ceased production of the system. Sony will have bled far too much money, and will have probably lost ground rather then gained any.

The financial model Sony has adopted relies far too heavily on success. They further more have expended all their reasonable options. There comes a point when you have to say something is a money pit, and continuing to throw money in will only suck you in deeper. Sony is walking a fine line right now waging losing wars on far too many fronts. They simply cannot say we will throw eight billion into a hole, and pray something comes from it. There comes a point when it is time to cut your losses.

We have to realize that Nintendo has adopted a lose nothing approach. They sell consoles, and even if they flop hard their not out of pocket on the venture. This has been their standard practice for the past three generations. They could survive on modest sales. Microsoft on the other hand is looking to diversify, and gaming is a corner stone of that plan. They need to diversify other wise they could become a one trick pony. They have the money now so they will work diligently on market penetration. Where there is a chance there is a way.

Sony is not like the other two however. They are a hydra of a corporation with their fangs in many different industries. Shifting resources and spreading out gains and losses. The money being lost on gaming. Could be money well spent on strategic investing, insurance plans, chemicals, chips, televisions, camcorders, cell phones, movies, television series, music, and real estate. They could live without the gaming in fact they probably would be better off not doing it at this point with the current situation.

Recent developments only highlight the financial problems Sony is having swallowing the losses on the PS3. From a purely simplistic view. We really might be seeing Sony approaching that breaking point. I have said it before this holiday season will tell the story of the PS3. Sony probably has a list of criteria they must meet to move forward. Miss those and an exit strategy will probably go into place.

Flaming Sony is not hypocritical or cruel. They truly bring it upon themselves. The number one culprit dishonesty, and if you will pardon my language unadulterated bullshit. When you behave like a child you deserve to get scolded, and mocked by others. There is simply no excuse for the idiotic lies, or the nonsensical statements. Even if your a Sony supporter you should feel no need to excuse their reckless behavior. You most certainly should not cry foul when someone else points it out.