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This Fall Sony's gaming division should do good, and I expect a $100 price cut at least, probably around September time.

The PSP Go will be a gem for Sony. It's probably cheaper to produce than the current PSP's and it retails for about £100 more. This means that once promotion and R&D costs are made up for, Sony should be making around £100 profit off each PSP Go this fall. This should be able to offset PS3 losses unless the price cut is a massive one.

Software from Sony should also make them alot of money this fall, especially if GT5 launches. This again is very capable of offsetting PS3 losses as I believe SCE made a profit last fall (I think).

Production costs, especially with a slim should lower quite substantially meaning the loss per PS3 for Sony shouldn't be a huge amount. Also with a price drop alot more PS3's may need to be produced, again leading to reduced production costs maybe through the likes of bulk buying etc.

So, really it seems to me that Sony can cut the PS3 price by a decent amount and still make a healthy profit, especially if the PSP Go takes off.

After this Autumn the SCE division IMO will not post a loss for quite some time.