New PS3 60gb now for $500

[Bodhesatva]

This is a case where the users are a little disconnected from economic reality. No one would argue that a 100-200 dollar price drop wouldn't help sales: absolutely, it would. The problem is that they'd be bleeding money in the process.

Simple truth: if Sony did drop the price even further (and thus increasing their losses per console), they'd need to sell 2-3 more games per console sold just to break even. I am honestly curious how you suggest they do this, especially considering the current GPS (Games per system) is actually quite low for the PS3: considerably below that of either the Xbox360 or the Wii.

Here's an exaggerated example to clarify the point: what if Corvette dropped the price of all its cars to 1 dollar tomorrow. They would, in less than a week, control somewhere around 90 percent of the entire automobile market. They would also be laughably and completely bankrupt.