rocketpig on 31 January 2008
| Reasonable said: I think it should be remembered that out of all the players Sony is by far the largest producer of consumer electronics. They should be able to rapidly reduce production costs ahead of Nintendo and way ahead of MS. It's not too surprising (given its something they have control of) that they'd seek to reduce losses via cost cutting rather than relying on sales. There were hints between annouced cost savings and internal reviews that a profit might be possible and clearly PS2 and PSP sales coupled with cost reductions and improving PS3 HW/SW sales has brought them back into the black. The big question now is can they stay there in the coming months. |
Sony does have an advantage over MS and Nintendo, but I think it's a rather small one. While Sony can probably reduce prices on optical drives, motherboards, and other components more quickly than its competition, the bulk of console price reduction comes from GPU/CPU/RAM process shrinks, all of which are handled by other companies (Nvidia, IBM, ATI, etc.). MS and Nintendo use some of the same companies (IBM) or competing companies (Nvidia and ATI).
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