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Mummelmann said:
@TC: Hmm, if you loose 100$ per console, you won't make up the loss with more consoles sold; you'll make MORE of a loss with every console sold!
However, Sony will try to push the hardware with lower prices and bundles that cost them a lot in order to get a bigger install base so they can make up some loss with software.
The software is where the big money is, after all!

 

Well that's not completly true.  Products cost money to store in warehouses, and the more the PS3 piled up the more it was costing them money in warehousing costs.  They can't just stop making PS3s because they deals with the factories.  Also it's very costly to stop production and then restart it.

By selling the PS3 at a loss they are saving even more money in warehousing costs which are going to increase the loss you are taking on each unit anyway.  So why not cut the price and get them out of there now and try and build up some momentum instead of taking massive warehouse losses.