PS3 Price drop impossible?

[Alby_da_Wolf]

kowenicki said:

Rock_on_2008 said:

kowenicki said:

Rock_on_2008 said:
ssj12 said that Sony announced the PS3 would be retailing for $300US by the end of the year around November this year. So the price cut will happen. PS3 price cut is possible for 2008.

So they will reduce the price of the PS3 and continue to lose money, undercutting their own stand alone players where they presumably make money.... thats commercial suicide? dont you get it?

The manufacturing costs of PS3 will have been reduced by August this year.

So they reduce the cost accordingly... so still no profit from PS3 and i guess it will co-incide with a reduction in the cost of stand alone blu ray players then? it will have to wont it.... so now they just wipe out profit margins in both parts of their business. madness. you really dont get this do you?

IIRC PS2 started giving profits even from the sole HW after 2 years, but console profits are also from royalties, and building a larger user base increases royalties more than linearly, as more games are released for the platform. After 2 years from launch, or perhaps more for PS3, given the higher costs, HW will start being profiting, but high profit margins will be achieved perhaps in another 2 or 3 years, just like it happened for PS2. By then, also royalties will be huge. And on this matter was one of MS' biggest mistakes on XBox 1, a life span far too short, HW was profitable only for the last 1 and 1/2 year and even worse SW houses support was prematurely cut not only by scarce success, after all XB1 sold like GC, but more than all just by the short life publicly and stupidly proudly announced by MS itself.