i would buy another one then. it would be nice to have a ps3 in my bedroom.

whatever the price of the PS3 is is not the fault in his statement.. its his math.. 13 million PS3s sold at 200$ loss is not 26billion dollar loss.. its 2.6 Bil loss..

Well, the iSuppli figure seems outdated now anyway, with the six cents per dollar ratio.  

Sony fans would wonder why they would want to buy an underpowered PS3 with no blu-ray player or hard drive when they could have a 360 that outputs in HD or a Wii with great motion controls.

MS would have to immediately drop the high end 360 to the same price or be crushed.

Nintendo would ignore it and since PS3 has the least mass market games of the 3 systems currently, would get away with doing so for a while. If your a woman or have kids there's just too little content on PS3 to be worth a purchase even at $150.

Assuming MS drops the price of 360 then we go right back to where we are, except 360 would be stealing more of Wii's audience than PS3 and therefore probably outsell the PS3 until Nintendo matched the price point. On the flip side, a lot of people might buy a PS3 just for blu-ray but that would only serve to make this a huge loss for Sony even if it ups there marketshare.

There's little to be gained for Sony to be at a mass market price until they have the corresponding software. When Just Dance, The Biggest Loser and Deal or No Deal have PS3 versions then dropping the price below's Wiis might make sense.

Remember the PS2 sold as much as it did because it had ALL the software for ALL markets not just games for gamers.

Theoretically, if PS3 components became magically dirt cheap...

Nintendo would be fine. They'd still sell to many of the same customers, many of whom don't even consider the HD console route an option. They wouldn't cut price just for marketshare, I highly doubt they care about it (and rightly so, they carry the system on their own). The Wii would probably continue to outsell the PS3 once the price cut craze wears off.

MS would be doing worse, but it's not as if those prices would drop 360 sales to zero. The 360 is a fine deal, regardless of how the PS3 is priced (though anyone that doesn't care for 360 exclusives will pass on it). Even if their sales dropped to 35-50% of their current sales, they already have an enourmous install base who will continue to buy software.

There'd be no PS3 to purchase, as Sony would've long gone bankrupt and closed its doors shut.

Realistically, I actually think both Nintendo and MS would just price match @ $149.  Nintendo would probably find a way to break even (maybe remove WiiSports and sell it for $29 separately?), and MS would just eat the loss (and probably throw in small HDD to feature match).

Sony would banckrupt,

This is the same thing people say about Wii price drop form $249 to $199 which didn't turn out to be true.

While it's an interesting concept, it's basically PSP GO with contract since we are removing retailer out of equation. In addition, how many people you know actually buy 36 games in the whole console cycle not to mention in 3 years? If the number of games become 6 per year or even 4 per year, it would be much more attractive but then at the same time it wouldn't make Sony much money at all.