Its called killing 2 birds with 1 stone. they make the money back in a huge way if blu-ray wins the format war crap. and Sony has always sold there consoles for alot cheaper then it is to produce. the PS2 cost about 425 to make when it launched and Sony really didn't start making a profit on the console itself till they sold about 60million consoles. By that time the production cost came down. the whole time they were offsetting losses with game sales which we all know was incredible for the ps2. A huge company like Sony can take the 2.billion dollar hit cause they know that the price to produce the console will dramatically fall. The main 2 parts of the ps3 are already dropping in cost to produce (blu-ray and the cell) the bluray diods cost will drop buy 100 bux due to great manufacturing which works for the PS3 and standalone BR players prices to drop by years end. The cell will have the 65nm chip in PS3's by mid 2008 to reduce power drawn and cost to make. im not sure how much cheaper that will make it but im pretty sure it will cause the price drop of the ps3 in 2008 rather than this year.
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