PS3 $100 price drop Sunday

[ckmlb]

Sullla said:

ckmlb said:
I think overall it's a good thing for Sony to make the price cut now. I mean you can say that they'll lose more money per system this way but it's more important to increase the userbase now and bite the bullet.

Basically Sony is doing what MS did last generation lol. It's the right thing to do at this point.

I agree, ckmlb. It's the exact same strategy: price the console aggressively to move as many units as possible, selling at a loss again and again. I do think it will help somewhat in moving more consoles; the question is simply how large the effect proves to be. I just think that Sony is setting itself up to follow the financial trajectory of the XBox as well: sell a goodly number of units, at the cost of bleeding out money from the ears. But the situation for them has not been good, so I guess they may as well play their remaining card and see how things shake out.

I can't wait for the next quarterly earnings report from Sony, to see how they crunch their own numbers over this price cut. Does anyone know when that will be?

What a huge day for gaming news, a PS3 price cut and Microsoft 360 warranted announced at the same time! With the latter plan said to cost more than a billion dollars, and the PS3 price cut almost certainly running into the hundreds of millions, these companies are playing hardball. I just wonder if anyone other than Nintendo will end up making ANY profit this generation, drowning in these seas of red ink...

 

Where the PS3 will still be more profitable than the xbox even if Sony follows the same strategy is that it is also a Blu Ray player, and they are getting more people to buy Blu Rays which is money to Sony.

Also, Sony first party is a lot better than MS so they will make more money off game sales than MS did last gen. 

So overall, the PS3 will be in a better place because of those two factors. This is if PS3 ends up in 3rd and doesn't pick up too significantly.