| bonkers555 said: Wow, I'm kinda shocked that Sony is more worried about market share with M$ then posting profit. Why would they do a price cut and not make profits from 3.7 units shipped. Very puzzling. |
Except they wouldn't have shipped 3.7 million had they held the price. $50*3 million (theoretical shipments without a $50 price cut) = $150 million in lost revenue, which could be pure profit on PS3. That doesn't even overcome 50% of Sony's divisional loss, so in reality Sony didn't sacrifice posting a profit for sales momentum, they just decided that wearing a larger loss for the quarter was acceptable.
I think Sony knew PS3 couldn't save them profit-wise so there was no point in holding back on their PS3 strategy just to reduce the losses. They want to ship 15 million for the FY and that's been the PS3 KPI since the beginning of the FY. Clearly a $50 price cut was always a part of achieving that KPI from the beginning. I thought it would be $100, but it's possible $50 will do the job. I'm seeing another $50 cut next FY at the time Sony announces PS4.
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