There are several things people MUST consider with the PS3 price cut/PSP GO.
1. Retailer margins are likely higher.
2. PSP Go!'s total sales will probably be 1/3rd of the PSP 3000s sales as its much more expensive.
3. Rolling out a content delivery network is expensive.
4. Any price cut on the PS3 loses Sony the money that people would have otherwise willingly given them. Say 7,000,000 people would buy PS3s at $400, 10,000,000 people would have bought a PS3 at $350 and 14,000,000 people will buy at $400. A $100 price cut loses $700,000,000 in revenue from the first group, $150,000,000 extra from the second group. So the total revenue gained from the $100 price cut must offset any hardware losses and the opportunity cost of $850,000,000 that they could have gained otherwise from not cutting the price. Its quite an involved calcuation.
Tease.
