IMHO its a tough choice the one sony has to make. Is like chosing the way you are gone die. I base my opinion in the fact that if they don't do something now it would be impossible for the to rise on top in this gen but if they do something to drastical, they will have to pay a great cost that i don't know if the can afford.
Let's take into account some facts that anyone can't deny and with some basic math, i will show you why i think it's better for sony to reduce the damage caused by the ps3 rather than trying to pursue the lead of the race.
Imagine that today the PS3 breaks even... it sells at 600 and it cost 600 to produce (adding every cost, storage, shipping, etc)... Ok so the PS3 reduce its price to 500 and sony loses 100 bucks per console... lets say that it takes a year for sony to brake even again on the 500 price. So is a year loss of 100 for every console. If this price drop encourage everybody to buy a ps3, it can be easily said that it will sell at the least 15 million consolesin a period of time of a year (with all the ups and dows... xmas, summer, games draught, etc). Now lets do some basic math. 15 million X 100 bucks = u$s 1500 million or 1,5 billion. How many games, accesories and souls they would have to sell to overcome this loss plus the previous loss of 2 billion.
Same scenario... but with a 200 bucks price cut, in this case we can easily say that the amount of consoles would rise exponentially... at 400 even a retard would buy a hi-tech console with free online, br, hd and bla bla bla. So we can state that during the period of time of a year selling 30 million consoles could be sold without any given doubt. Basic Math again. 30 million x 200 = 6 billion dolars (Now i am picturing Dr. Evil saying this). We also had to add the 2 billion dollars loss already known by everybody and this is a great load of money to earn by selling games and everything else.
IMO i don't think that sony is doomed or the PS3 is a failure but for the sake of the PS brand and sony itself it's a better policy trying to reduce the damage and turn up with the and really small profit or really small loss than dooming itself by chasing and possible goal (of being again the leader of the console market) at a really high cost.
