The comment on inventory is also telling - they have $1.6bn of "finished goods" sitting in their warehouse, waiting to be shipped. This is a 77% increase on the figures from 12 months ago.
So in short - they are making hardware much faster than they are selling it (although the inventory did drop over the Xmas qrt, as expected).
"This is primarily due to the buildup of finished goods following the worldwide expansion from the PS3 business".
...
If they drop the PS3 price by *another* $100, they will be forced to take an immediate hit of around $400m on their financials (i.e. around 25% the value of their warehouse goods). That won't make their gaming sector look pretty, unless they can hide that figure somewhere else on the balance sheet.
Gesta Non Verba
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