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algorith said:
thismeintiel said:
Squilliam said:
thismeintiel said:

You have to remember, though, they are going by consoles shipped.  And according to last quarter's financial reports, the PS3 was only behind by 3 million units.  This means that it closed the gap by ~ 5 million units in a little over a year.  I think the PS3 will definitely out sell the 360 by the end of next year, especially with its inevitable price cut next year of $50 or $100.

The two bolded points don't make sense. You claim to have read the financial reports and yet you claim it is inevitable that Sony would cut the price on the PS3? IIRC Microsoft EDD made more money in the last quarter than SCE has made in all profitable quarters combined since the PS3 released.

I know this response is kinda late, but oh well. 

I don't get your point.  So what if MS is making more?  Why would Sony make their decisions based on how much MS is making?  They are going to drop the PS3's price next year because it will be time to.  The PS3 has continued to drop in manufacturing cost.  So around this time next year, Sony will definitely still be making a profit if they cut to $249, the price I'm guessing they will most likely drop to.  So that's profit from every console, regardless of how little.  Plus, extra money pouring in from new game and Blu-ray movie sales.


 With the dropping value of the dollar and Sony's very low (if not losses) margins on the PS3, they certainly don't have the same space as MS to make a price drop which is what I think the previous poster was trying to get across. MS could do a price drop sooner than Sony based on their statements. 

Well, they have already confirmed they are making a profit on the PS3.  I think I remember it being somewhere in the double digits.  Either way, they will definitely be able to afford to cut it at least by $50 by holiday season of next year.  And MS will definitely counter with a drop of the Elite to $250, but any price drop at this point will be in Sony's favor, since it will be the first time the PS3 had a SKU that low.