Obviously this is dumb and will never happen, but it's a funny hypothetical to think about.

This could obviously be for any system, but I'm choosing the PS3 as my example here because it is the most expensive console and is the most "feature rich." (not being a fan boy here, but not too many can disagree with this, though, knowing this site, there will be a fanboy war within 5 posts).

What do you think would happen if Sony went crazy and (somehow) their production cost of the PS3 allowed them to price the PS3 at $150 and have the same losses per console as they do now.

EDIT:  I changed the above hypothetical a little bit because I am sick of the "Sony would be out of business" replies since those are obvious and not interesting.

Would it affect Wii sales at all?

Would the 360 and Wii follow suit even if that meant massive losses per console?

Would the sales drastically increase/flatline/have no affect?

Would the software that appears on the PS3 change and have more "shovelware" type games?

How much software would each PS3 owner have to purchase to make back all of the lost money from the hardware losses (if the sales increased dramatically that is)?

Forgot to mention in this hypothetical, assume all other things are constant i.e. MS and Nintendo have the same production costs for their consoles as they do now.

Well...

It would sell a lot. And i mean a whole lot.

I think it would be doing Wii-like numbers...

I believe Kevin Butler said it best "Price check in aisle BOOM!"

360 would be out of business (if were talking holding it's price steady, which would be suicide) and the PS3 and Wii would be neck and neck.

People who own a wii or a 360 and yet haven't been attracted to the ps3, would buy one just because it would be too cheap.
So sales would sky rocket!

Lol. I think Sony sould be out of business...=0)

Sombody would be out of business, I'm not so sure it would be MS or Nintendo.

If business were as easy as dropping prices, we would all be Bill Gates.

@Kage848 Yeah, heh. I did say it was dumb.

But, interesting. I'm not really an "average consumer" when it comes to games and consoles, so I don't usually buy consoles that I don't already have just because they're cheap, so I wasn't expecting that answer.

And PS3 and Wii neck and neck..................that right now blows my mind :)

Well actually, if we're holding everything but the ps3 price constant in this hypothetical, they would be losing ~$150-170 per unit and selling millions. So for every million sold, Sony'd lose $1.5 to 1.7 billion. So if they did their 13 million projected they would be down around $20 billion. Not sure they could sustain that for very long, even with increased software sales. It would kill their tie-ratio as well, since they would become impulse purchases.

Sony would be doomed