If they want to return to number 1 they need a 200dollar price drop .The PS3 for 400 would be really a superb value . Still ,if there isnt any game ,or any exclusive game ,released the price drop wont do it all . So they must time everything to make coincide the price drop and some high profile games as Ratchet and Clank and Heavenly Sword coupled with other multiplattform as Unreal 3 etc . Now ,a 200 price drop is almos unheard of .I saw one when the Xbox first launched here in Spain ,it was 500 euros and when after two months it had sold next to nothing they had to reduce the price two times in a row .Once it was at 300 euros the thing started to sell normally .Maybe Sony should do something like that . As for the losses it makes them it is relative .They are selling the consoles in some places as Japan and Asia at roughly 400 dollars or less ,so that price must not be so far of the profitability as we think .To be clear ,the 800 dollar cost per machine is not very realistic .Besides ,if you dont sell the machine you are taking a 800$ (or whatever ) hit .Selling at at the maximum price the market accepts and then trying to recover through software and BR movie sales is the way to go if things go really bad .The solution isnt selling it at 600 in small quantities and have millions of stock left in your stores .Sony will have to make their act sooner or later . Some exclusive games and a drop of 200 would be the way to win ,but if that price drop is impossible then they will have at least to cut the price by 100$ and see how things follow . As for price drops go the production in 65nm ,the elimination of the EE and the reduction of the blue diode are for sure saving Sony at least some 100$ out of the machine .Plus of course the fact that the succes rate in the fabrication of the components and the consoles itself must be improving a lot since last november .
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