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KillerMan said:

It really depends on what kind of device PSP2 is. If they are going to sell it with good profit margin I don't see reason why they couldn't cut the price of PS3. If they use the same model as in the past though. That's different thing. I still predict that they will introduce so called super slim PS3 with price of $199 and move budle with price of $249. PSP2 will be $249-299 and it will make profit from day one. This with already very good looking game line up for PS3 next year and good ad campaign and we could see some spectacular sales next year.

Even if they have good margin on the PS3 you still have to account for the NRE (non recoverable expenditure) from developing  and releasing the PSP2. At the launch of a new product the NRE makes up a significant proportion of the cost of each unit. Beyond this what do you figure the outright advertising, marking and co marketing expenditure for a new launched handheld is? Microsoft allocated $500M, how much will Sony have to spend between the PS3, Move, games and the PSP2 and it's games?



Tease.