Tretton: "We’ll do everything we can do to make our pricing relevant"

[Taz!]

I still think a $100 price cut can be more than justified for the SCE division.
There is no doubt that cutting the price will lose them alot of cash, but due to not fully knowing updated production costs we don't know exactly how much.
Also, if you take into consideration increased software sales for the division this fall, that will help counter the losses.
The PSP Go is also a little gem in my eyes. As far as Im concerned, Sony will be making at least 60$ profit per console, and in the UK i'd say around £65. If it has a reasonable Christmas, even if it only sells 200,000 units on its own....it's alot of cash.
Throw in the potential of GT5 which would be an extra $30+ Million in Sony's pockets, then I think that with a $100 price cut this fall, Sony could still get away with very very small losses, or even make a profit.

The thing is....how are they going to counter these price cut losses throughout 2010? I know production costs will likely fall again, and that the economy should start recovering, but I still wonder whether or not these losses could be met.

I suppose only Sony knows if it's viable, not just this fall...but in the longer run