More evidence of no PS3 price cut this year

[dbot]

fastyxx said:

dbot said:
If Sony sales drop significantly in the US after the 360 cut then they will change their tune. I think Sony is happy with the results of the 360 price cuts in Asia and Europe. Each round of price cuts will decrease the system's attach rate because they will be courting a more price conscious consumer. The 360 will sell more consoles at a loss and will not move as much software per console. I don't think this is a game that Sony wants to play.

The problem with this logic is assuming that MS is selling at a loss.  I don't think they are at current prices - and the 20 gig price cut isn't really a price cut. It's a clearance sale to make way for the new SKU - similar to what Sony did last year.

 

It would be interesting to see how much it does cost to manufacture the 360.  I haven't seen any estimates recently.  I suspect that a $50 price cut will drop the price below the cost.  This is especially true if you take into account the burden of the 3 year warranty.  I think it would be hard to make money sub $300 without the introduction of "slimline" design.