| URNotE said: its not neccessarily true that they wont cut the price this year... gamecube cut their price after 6 months.. so did the original xbox.. and everyone knows how much the xbox lost on every console made.... expect them to cut the price at least down to 50 or a hundred dollars this year... they just cut the price to blu ray players i expect the ps3 to follow suite this year... hell even the 360 is still losing money on each console made... this generation is turning out to be different though |
The Gamecube and XBox reduced their prices because the PS2 cut its price ... Nintendo wasn't hurt that badly because (although it was a more powerful system than the PS2) the hardware was inexpensive enough that any losses were short term; the XBox (on the other hand) lost over $4 Billion (or about $200 per system sold) largely because hardware losses were never recovered.
Sony is not known for reducing prices early and likely choose the $600 price point because they could afford to sell the PS3 at that price after the 65nm process was implemented and the Blue Laser diode was reduced in cost;Sony never considered the possibility that either the PSP or PS3 would be unpopular compared to their competition and thus didn't anticipate needing to reduce the price of either system early on. Any moderate ($100) to large ($200) price cut would produce large long term losses to Sony's gaming division.
Could Sony afford to reduce the price? Possibly, but shareholders would not be happy if Sony (as a whole) had a $1 Billion loss because of the PS3.
