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davygee said:

All the costs of the PS3 are all speculation.  Yes Sony are losing money on the PS3's or were at one point obviously because of R&D etc, but I seriously doubt they are losing $200+ per unit.  Blu-Ray costs are dramatically reducing all the time and these costs alone IMHO will provide Sony with a profit per unit sale.  Also there are reductions on chip manufacturing costs and removing the emotion chip will reduce costs as well.

I honestly believe that Sony would be making a profit at the moment if they had only included a DVD drive instead of Blu-Ray....but seeing as Blu-Ray costs have reduced have halfed in less than a year, this bodes well for Sony in reducing the PS3 price as well as making a profit.

I still believe that Sony will reduce the PS3 price by the end of this year. 


Well, I have said for awhile that the losses on the PS3 were probably overestimated and I expect that after the early ("easy") cost reductions the PS3 will be nearly breaking even (including controller, cables, packaging and shipping). The reason I'm not expecting a price drop is that most of the "easy" cost reductions have (or soon will) have been made and it will take time to make the system dramatically cheaper. If Sony cuts the price of the PS3 they will be losing a pretty large ammount per system and as cost reductions alow them to break even they will be presured to cut the price again; in other words Sony would be forced into long term hardware losses. I could be wrong but I think a price cut would be an act of desperation from Sony.