Will Sony ever make money off of PS3 hardware sales?

[NJ5]

HappySqurriel said:

NJ5 said:

Profit from hardware sales? Not sustainably, since they keep cutting the price to a value under production cost, and this will likely continue to be the case.

For example, now they're almost breaking even, but a price cut is needed... So the price gets cut, they go back to losing money, then after a while production cost goes near the price, but another price cut is needed again. Lather, rinse, repeat.

 

I think it is entirely possible that Sony might make the unpopular but necessary decision to not cut the price of the PS3 ... Marketshare is a great way for companies to brag but profitability is more important to Sony in both the short run and the long run.

 

I had the same opinion a few months ago, but I think their HW shipment forecasts tell us they're planning a price cut...

I still think it's foolish to cut the price when the company may face cash problems in the short/medium term, but I don't think they'd be doing a 13 million forecast (30% increase over the previous year) in a recession unless they were planning something... Price cut or not they'll likely miss the forecast, but without a price cut they'll miss it by a huge margin.