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RolStoppable said:
In my opinion Sony made desperate moves.

Projected loss for SCE during fiscal year 2007: about $500 million.
Actual loss of SCE after two quarters in fiscal year 2007: about $1 billion.

40GB and price drop were introduced after Q2, so expect additional (big) losses for SCE in Q3.

SCE has absolutely no chance to meet their initial goal for fiscal year 2007. The PS3 was in a difficult position and the price drops and introductions of new models were desperate moves to keep the PS3 alive and a viable platform for 2008 and beyond.

Sony made tough decisions and they made the correct decision. Take a loss now and have a chance to gain a market share or keep the high price, minimize losses and sell minimal consoles and lose major exclusives such as Tekken 6, Metal Gear Solid 4, Final Fantasy XIII and Versus XIII to the 360.

No one can deny that Sony done the right thing for their business and they will not stop. They will drop the price again early next year right before MGS4 release. They will put the acid on, they have no option.

I wouldn't mind betting that Sony will accept losses on the PS3 and attempt to make them back with the PS4 but they need a market share. They don't have the hugh selling 1st party games of Nintendo therefore they need to keep Square Enix, Konami etc... support. That is why the price got dropped and why it will get dropped again. S-E tell Sony to drop the price, Sony will, simple as that.