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Sony will never make a profit on the ps3. The have already lost upwards of 5 billion dollars on the ps3 alone.....in 3 short years.

Furthermore, the sony games divsion as a whole has not been profitable for 3 years even with the ps2 and psp being profitable.

This price cut was a desperate attempt to gain market share, however, the financial losses will be staggering and they are risking their future on this suicidal price cut.