PS3 sales - how low will they go before picking up?

[Bodhesatva]

 

Right, but as has been mentioned before, pulling off profitability is harder with Sony's particular marketing strategy.

Selling the system at a loss works great, as long as you actually do go on to be the market leader. If you do not become market leader, then you don't get overwhelming 3rd party support, which is where Sony made its money last generation. So what happens when a console sells at a loss and still ends up marginalized? To find the answer, one only need look at the original Xbox: you lose billions of dollars.