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No they wouldn't be broken, even considering how much they lost per console. Why?

In order for them to be the leaders, they'd have to be selling a LOT more. What's that mean? When the first price cut crept up that kept them out of profitability, they would have never cut the price because they were selling enough that they wouldn't have to. They'd have started selling a little less, and eventually cut the price when they could have stayed profitable, and we'd still be paying $400-$500 for a console right now, because like I said - in order to be the top console, they'd be selling a lot more at that price point than they did. They'd be making a lot of money, and we'd still be looking for that next $100 price cut in the next year or two.

This wouldn't have ever happened because they'd have never sold enough consoles at the $500-600 range to keep from having to lower the price the first time, which is the only way this could have happened. Had they been selling more, yes they might have lost a little more - at first..but they'd be as rich as MS right now if they were selling enough to be 1st place, cuz it would mean that the price point of the console obviously means nothing to the consumer as they obviously feel it's worth whatever SONY sells it for.