No price cut for PS3 this year?

[Grampy]

It seems like most commentators keep calling on Sony to make a price cut but it doesn’t make financial sense to me.

If they do it to try and compete more aggressively with MS I think they would just drive each other back into red ink without making any real change in their relative positions or significant inroads against the Wii.

For Sony to have a price war with Nintendo makes about as much sense as Luxembourg declaring war on China and planning to win by attrition. They would sink into sea of red ink and if the sales started to affect Nintendo, they can certainly nullify it with a price cut of their own and still remain profitable. They make enough on first party software to probably be able to give the Wii away and not lose much money.

At this point Sony has sold enough units at a loss and they seem to be near enough market saturation that they have to sell all the rest at a decent profit to have a prayer of ever seeing an overall profit from the system. If the PS3 never earns any money, will there even be a PS4.