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kain_kusanagi said:
Jay520 said:

IMO, I think Sony will drop the PS3 to $249 in 2011 and $199 in 2012. 

I don't know, It'll be close.

What makes you think that?

Sony only just recently started making a few dollars profit on each PS3 sold. Why would they want go back to losing money on each PS3 sold just to outsell the competition? They are making a profit for the first time since the PS3 was relreased so they have a lot of unprofitable time to make up for. Maybe, and this is a big mayby, by 2012 the PS3 will be cheap enough to manufacture that Sony can sell it for $249 USD. But they won't be at that next year or at $199 the year after that. I doubt they can knock a $100 USD of of production costs in just two years without a major redesign and that's not going to happen. They might reduce the internal parts a little, but we aren't going to get a PS3 Slim Mark II, that I can assure you.

They made a profit on the $299 PS3 back in APR 2010 . I think they can afford to break even on a $249 PS3 by  Fall 2011. That gives them about 18 months to cut their prices by $50. I don't know the specifics of the costs of hardware, but I think they can make that cut. Besides, I can't see the PS3 entering 2012 at $299.