How will the PS3 do in 2008 when its "big guns" (GT5, MGS, etc.) come out?

[Lost tears of Kain]

SlorgNet said:
Ah, 2008... things may get very rough for Microsoft, very quickly.

Believe it or not, Sony is not losing money on the PS3 hardware anymore - 30% annual cost reductions, plus the 65 nm chips have arrived, plus the strength of the euro (399EUR = $575 US). Most of the parts are made in China, which ties its currency to the US dollar. At this point, the game division's losses are due to increased advertising costs, as they shift to a mass ad campaign and software revenues start to roll in.

Originally I thought Sony was going to give Microsoft six more months of breathing room, i.e. cut prices to $399 in spring of 2008. But instead they're going for the jugular. $399 for November 2, and most likely a $349 or lower price point by spring of 2008 and $299 by fall of 2008, plus several Godzilla-sized games from its studio system.

The console with a 20-gigabyte hard drive costs $805.85 to make and sells for $499 at the register, for a loss of $306.85, according to iSuppli.

The higher-end 60 GB unit, with built-in Wi-Fi and other amenities, does slightly better, with a loss of $241.55, stemming from production costs of $830.25 against a $599 pricetag.

These losses aren't unusual in the video-game business. Most consoles are financial losers initially, but the manufacturers more than make up the shortfall over time through licensing agreements with game publishers, as well as selling second controllers and other accessories. And as time goes on, the components and processes used to make the consoles

http://www.foxbusiness.com/article/playstation-expensive-sony-230259.html

 

So right now, sony is losing ALOT of money on those two consoles, and im sure the 40G is not much better

Your 575 for each one is europe only, think about prices in japan and America

 

You understand that MS wont just stand and watch why sony drops price and releases games right?