Will Sony Respond to XB1 Pricecut?

[binary solo]

MoHasanie said:

the-pi-guy said:

jlmurph2 said:
Can they afford that?

They could certainly.  It's be sitting at 400$ for almost a full year, probably making some money on it, if not they are making most of their money on games and PS+.  

Sony is in big trouble right now financially. Most of their products are loss making, so I don't think they just want to break even on each PS4 if its one of the few products that is actually profitable. 

They are actually cashflow positive, and likely will be for this year. It's their write downs and other accounting stuff that puts them into a loss (previous quarter operating income was positive). So in the short term they can probably afford to take a small hit on cashflow, what's another 100 million of red ink when you're already looking at over 2 billion for the year. As long as it won't bankrupt them, which it won't being more long term in strategy with PS4 is a good idea. Shareholders (the ones who are left) can be easily sold the line that PS4 is killing it right now, so ensuring continued dominance, esp in the very lucrative US market, is worth squeezing the margins over the next 2 months.

Not that I think they will with an actual price cut.