The article says nothing about production costs relating to profitability. I'm not sure where people fished those facts from.
What it does say is this:
"Lower prices will allow Sony to target potential buyers of Microsoft's $479 Xbox 360 Elite model to increase sales and narrow losses at the PlayStation unit, analysts said"
...
Someone explain to me how Sony cutting the price of the $60Gig model by $100 will "narrow losses"??
That is an extra 4-5 games that have to be sold / console, to break even on each of these babies.
...
This is a clearance sale. After these units are sold, the price returns to $599 - on the new, cheaper-to-produce units. Sony will make a lot more profit on those units - even at the $499 price - than the current units at $499. At $599, they are much closer to breaking even (throwing in an extra game that most people are not buying is just a smart marketing move).
Gesta Non Verba
Nocturnal is helping companies get cheaper game ratings in Australia:
Wii code: 2263 4706 2910 1099
