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gekkokamen said:
Also you're missing the point talking about PS3 profitability. They could cut the PS3 to $250 this fall and still make , albeit little, profit. Bundle Move for $300 with the console. Yeah they will be losing some money, but that's not as bad as risking not moving anything at all for a higher price. When you're introducing a new peripheral like Move, the first important step is to create a large installed base quickly. Then you can recoup any losses selling the games and EXTRA controllers.

If you really think this is the strategy that will go down, then MS is just as likely to offer a Natal 360 Slim bundle with 250GB HDD for just $199.  Sure they would lose some money but it would all be made up in software and Xbox Live revenue.

I understand that Sony has said with software their PS division should soon be profitable, but as of the last financial report that division still saw a a multimillion loss.  The next financial results should be available soon and if they are beginning to finally be profitable on the PS3 venture you may be right and they may risk taking a loss.  But seing as how they have yet to be profitable at all and the 360 has been profitable for the last year or 2, I think it would be MS that is more willing to take a loss on hardware than Sony.  After all, it is the investors that everyone on here likes to talk about, and the investors supposedly will want to make a return on their investment sooner rather than later.