No price cut for PS3 this year?

[rocketpig]

Kyros said:

The best way to do that is a die shrink on the PS3 and no price cuts this year.

On the other hand they have to convince developers NOW that the PS3 will have a big userbase in 2-3 years, so those start making games for the console. If developers do not start to make great games now the PS3 will not bring them enough money in the lucrative end years of the cycle. This has to be seen as an investment in the future. A drop to 300 would do wonders for their sales figures and in the end it will not be their choice Microsoft will drop the price of the 360 this year and Sony will have to follow or lead.

Sony's goal is to make money on the PS3. 1 1/2 years into the console, they've already lost billions. Given the average console life of ~6 years, that gives them roughly four years to make that money back. A $100 price cut in 2008 would seriously harm any chance of the console ever turning a profit.

Developers are going to make games for the system because of the 360. It's a no-brainer to create PS3/360 games in an attempt to counter Wii dominance and still make money on a game. Games aren't Sony's problem right now. Those are coming (starting in two weeks) and they have to focus on getting their organization in line and making money on that black monolith.

Microsoft isn't a huge problem for Sony right now. They're outselling the 360 by a decent margin even after a pretty aggressive price cut by MS in Europe. Sure, the 360 will probably get a cut in the US this year, spiking sales up above the PS3, but overall Sony is comfortably riding a decent sales wave without any cuts.  There's no reason to change that IMO.