Is Microsoft bleeding Sony on purpose?

[Dodece]

Microsoft is a massively successful global corporation. They did not get there by being passive, or by not knowing how to win a fight. They are waging a war of attrition rather then trying to win a bar room brawl. The difference is subtle if destroying Sony in effect makes their gaming division a losing venture they have gained nothing. However if they beat Sony while showing a profit they have only accomplished every single one of their goals.

Here is an interesting thought. Microsoft can afford to charge more now bringing in more profits. Then thanks to those accumulated profits they can afford a much larger price cut in the future then Sony could afford to match. The result could be a two hundred dollar 360 next spring which would most definitely not be something Sony could come close to matching, and would most definitely put the final nail in the coffin. Further more that would force Nintendo to remain competitive. Honestly Nintendo doesn't seem to be in a position where they would need to cut prices regardless during the holiday season.

The more money Microsoft can make in the short term the more money they have to spend in the long term. Sony is actively sacrificing the long term in a effort to salvage the short term. While it might be necessary to save their console from oblivion it does mean that they have backed themselves into a proverbial corner.

Sony will not be able to hang a hat on the PS2 next year especially if Microsoft delivers a large price cut. The PS3 will still be a blood letting, and all Microsoft has to do is weather the holiday season keeping the PS3 unsuccessful enough. Capitalize on their new found profitability then use that during the spring to put the competition down for good.

There is a method to the madness. Microsoft making money is about the worst thing that can happen to Sony. Yes Microsoft is intentionally bleeding Sony, but if they use timing to their advantage they could destroy the consoles hopes for next year say when GTA launches. Could you imagine a two hundred dollar 360 being announced while Sony cannot follow suit. Such a system at such a price outside of the holidays would all but annihilate both the PS3 and the PS2.