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Million on 20 April 2008
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EaglesEye379 said:
One thing to keep in mind above all these projections is that Sony is already making a loss for every PS3 sold now and has already slashed nearly a third of its price. This will affect two things: a) Leeway for future price cuts, b) Revenue for future publishing and development


Agreed.

Now, it is enjoying a hardware boost, but it really should be selling at the Wii levels to justify the price cuts financially and make Sony a profit. The PS3 business is clearly in the red, whilst the 360 business is finally yielding profits.

Wrong , Wrong , Wrong Microsoft have never made a penny from any XBOX console.

That is why even a $50 price cut at this point will be quite hard for Sony to justify financially on their books. The 360 has had hardly any NA price cuts and is still enjoying a YOY install base growth rate and any further price cuts can push this to greater profits.

360 had a price cut in Europe bringin it to the same price as the Wii , still selling worse both the PS3 and Wii. the PS3's '08 line alone is enough to negate the effect of the 360 price drop , it's clear consumer interest in the PS3 and Wii is increasing wheras consumer interest in the 360 is stagating.


What Im saying in the end is that another $50 price cut for PS3 will give very little room for more in the future as they are already making a loss for each sold, and if the hardware boosts are not above current levels, it could even affect Sony's budget for future titles.

I don't think Sony would drop it's current PS3 price for the sake of remaining competetive , I don't think it needs to until christmas . Keep in mind Sony is activley tyring to cut the cost's of PS3 hardware so this should help ofset the cost's of a price drop.