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Why does this discussion even exist? All companies compete for marketshare and profit, simultaneously. More marketshare equals more profits in the long run, even at the expense of profits short term. If Sony had sold the PS3 at a profit at launch, ~$800-900, no one would have bought it. Then no one would have bought their accessories/games, so no profit at all there.

Not only this but it gives companies a better chance at the success of their next product. A popular previous product that devivers usually gives that company a loyal fanbase who are there waiting for their next product. Given the same scenerio as above, if Sony released the PS3 at profit and no one bought it, then they would likely have to withdraw from this gen after a year or so. If they tried to come back after this gen, many would have a lower opinion of them and therefore would be less likely to buy their system.

The real question is why does the OP feel this now. Especially after Sony has made a real push and it is paying off for them. They are gaining marketshare and are very close to making the PS3 hardware profitable. So who's marketshare is he worried is going to be going down? Are does he just not someone's to go up?