PS3 Strategy is Starting to Pay Off

[nightsurge]

huaxiong90 said:

nightsurge said:

Xoj said:

NJ5 said:

Sony could afford to wait to cut the price
...
The machine has so much staying power that Sony can afford to slowly cut the price

Is that why they dropped the price by 200 € / 33% in Europe before the PS3 even had its first holiday season?

If these are slow price drops it should be amusing to see fast price drops.

 

those are small price drops, it have 500$ - 400$ -300$ price cuts and sony as a whole didn't loose money until the depression start to hit hard.

and compared to the 360 it have 2 price cuts in europe in 2008- they are small.

Sony as a whole, perhaps... I don't know for sure and I don't think you do either.  PS division was taking major hits immediately after PS3 release and still are losing money.  Sony as a whole started losing large amounts of money in late 2007 to 2008, mostly because the average consumer now has less luxury money to spend and when Sony's products like HDTVs and laptops offer the same as other companies for hundreds more, people are going to pick the cheaper option.  Don't get me wrong, Sony has some very nice quality sets, but the competition is so close in quality and for $300+ cheaper.

Do you think they'd still be losing money if we weren't in a recession?

I think their PS losses would have kept them close to the red, if not in the red still.  And that depends on if the Yen still rose in value.  They'd be a lot better off if we weren't in a recession, that's for sure, but so would everyone else.