Is Sony really losing that much MORE money on the PS3 after price cuts?

[N-Syte]

I think Sony's in a bit of trouble.

Estimates of PS3 losses per unit at $150 seems optimistic to me. I believe a $200 to $250 range is more likely. Sure, the PS2 may be neutralizing some of the damage in its gaming division, but that's hardly a position of strength. The PS2 legacy should have given Sony an incredible edge early in the next gen. Instead it relies on it just to keep its head above water.

By many accounts, the battle of HD disc formats is at stand still. While an expected price war may break that tie, there is no certainty Blu-ray will reign. In any event, an extended price war will not help the bottom line.

Its electronics and digital equipment is facing growing competition from low cost producers across Asia.

I even hear the movie studio is expecting a less than stellar '08.

Music division? No clue.

But otherwise it seems like Sony is taking hits from all sides. By no means is the company going to fold, but for a company that prides itself on being a titan in technology and entertainment, it is on pretty shakey ground.

At this point, MSFT and Ninty have much stronger hands to play.