You sir are wrong on pretty much all accounts.

"Sony cant afford price cuts"

Sony has multiple products that cost more that $249/299, their tv's , cameras, laptops, cell phones, imaging equipment, the vita is probably one of the cheapest full line products they make, along with psp.  They change price all the time and sell in greater volume than the vita will for its first couple years.  The company has close to $13 Billion dollars in cash and short term paper, they can do a price cut if they want.

"Look at what happened to Nintendo when they cut. Huge Losses"

Nintendo was (is) bleeding money because of 1. currency 2. the Wii and DS had drastic y/y declines in hardware sales, which means lower software sales, which means lower overall profit.  The price of the 3DS effect to nintendo's overall bottom line is not the same as Vita to Sony because Sony is a conglomerate, Nintendo is not, they need to maintain marketshare as its the only business they are in.

"Sony on the other hand are bleeding heavy losses and havent posted a profit in almost half a decade"

The division that houses the playstation brand (along with Viao) was profitable last year (March 2011) and there were projecting profits until June of last year because of flooding in Thailand, the japanese earthquake, exiting the LCD business.

I agree with some of what you've said, but Sony can't really afford a price cut since as you mentioned, their gaming division is their only proitable one - what would happen if they started losing money on that one too? It's best to keep that one profitble, I think :p

Again Sony is a congomlerate, they have 5 division (Pictures, Music, Financial services, Consumer products and professional services).  Last year of those 5 divisons all 5 are profitable on an operating income basis.  On a net income basis 3 of the 5 were profitable (Pictures, Music and Financial services).  For this year that ends in March, the same thing is likely to happen, profitable on 3, losses on two.  Their TV business has lost about 18 billion dollars since 2004 and is the biggest driver of their net income losses, second most likely being the Yen's strength.  Outside of 2006 and 2007, the playstation division contributes little when it comes to losses or gains to overall revenue and profits (losses), their income is in line other division at the end of the year

Your talking as if they are all different companies which is just wrong....

  Never said anything about sony's division being from its whole.  Having different divisions gives investors an ideas of how different business are doing duh.

You do realise most companies of that nature have seperate "divisions" within their structure? Microsoft, Samsung, Toshiba, LG etc etc feck even Apple have "divisions". It is the way most companies work.

   See above

In those "divisions" some areas will do better then others. Some will be profitable and some won't. But they are all one giant collective which makes up a companies income,outcome and profit/loss. If overall they make more then they lose = profit. They don't make any profit = loss.

  Thats obivious

You can try and wrap it up and say well the xyz division has made xyz amounts of money but it is irelivent. The collective totals are what determines how a company is doing and more importantly determines if it will flourish or founder.

  Its revelant because Sony can pin point where their problem lies and take the necessary steps to correct it and it gives shareholders and analysts a point of reference to see how that division that is doing poor will do in the future.  to check to see if the steps are being taken to addess said problem

Right now Sony is "BLEADING" money. They as a COLLECTIVE are losing nearly $2m every single day. Do you really think when they go into their shareholders meetings and go

"Hey guys! Your be pleased to hear our amazing calculator making division is making 200% profit!! We now sell 10 calculators per year! woot!

But yeah our tv division is losing us $2b a year...... BUT our calculator division is going great!!"

Because that is some fantasy land shit right there.

Their totals determine what they can and can't do. And right now losing as much money as they are they cannot afford to lose anymore money. If you think they can drop the Vita under a month of release and make profit then I think you must be off your rocker. Because if that was the case then why didn't Sony start at a lower number if they had room to be around that price? Here in UK it cost £220 for the wifi version, no game or memory card. Why didn't they say start at £199 with a game and with a card? Wouldn't that have made it more competative and wouldn't it have maybe given them a higher opening week which in turn would of created "positive" news?

   Sony has smart people in their cost analyst department, you sell a product at a price that the market is willing to bear without sacificing margins in the process.  They are a business no a charity.  If the market cannot bear a vita at $249 (or in whatever currency you use) sony will adjust accordling, only in its favor

But ok ignore that. Here is another one for you.

If Sony are not in financial difficulty as you claim, and can "afford a price cut" then why have they been downgraded by the credit organisations? And why have 500 stock index analysts such as S&P put them in the "poor" forecast bracket? Going so far as to imply they could be downgraded further soon

  "We base the negative outlook on the long-term corporate credit rating on our expectation that we could lower the ratings further if we see no meaningful sign of recovery in Sony's earnings within six to 12 months"

Do you even know what that means? It means it becomes harder for Sony to borrow money. And when they do it will be at a lot higher interest to offset the "risk".

   Never clained that they are not in financial difficulty.

http://www.reuters.com/article/2012/02/08/idUSWLA260120120208  text of the full downgrade from s&P, i mean I can cherry pick also...

 Sony's TV business has made repeated losses since fiscal 2004 (ended March 31, 2005). The company expects to incur a net loss of JPY220 billion in fiscal 2011. Standard & Poor's believes the major reason for the extended losses is Sony's strategy to aggressively expand its global market share despite strong competition, a massive erosion of prices, and its high cost structure compared with overseas competitors. Massive pressure on the prices of Sony's key products, such as flat-panel TVs and mobile handsets, is likely to continue, and the company's position in the global market is under strong pressure amid severe competition from Korean manufacturers and emerging Chinese companies. In our view, an enhanced focus on profits, rather than on expanding sales, and efforts to lower costs are likely to reduce losses in its TV business. However, circumstances are so severe that Standard & Poor's believes it will be difficult for Sony to return its TV business to profitability even in fiscal 2013. Therefore, we see a low likelihood of a strong recovery in Sony's earnings in the next two years or so.

  However, we base our one-notch downgrade on our view that Sony's profitability and financial standing will gradually recover in fiscal 2012 because there will be no repeat of one-off expenses due to floods in Thailand and impairment losses on stockholdings. Also, we believe Sony's strong short-term liquidity (excluding finance operations) continues to support its financial stability.

  No where in their report did they say anything aobut any other division except thier TV business (and shortly their phone business) Short term liquity remaining strong

 http://www.bloomberg.com/news/2012-03-07/sony-sells-55-billion-yen-of-five-year-and-10-year-bonds.html  Sony had a bond auction this past wedensday that went well, double the amount they initally planned, if demand for sony paper was bad since it had a credit downgrade, why did it have a successfuly bond auction?

The real question is "is Sony making profit on the Vita?". We don't know. But we can assume that maybe they are making profit at the current price. Would Sony "risk" putting that into more losses by dropping the price? When credit groups are threatening to pull the plug? No.

Sony as a company will be trying to cut costs and stop that "bleading" of money. They will not be in a rush to add to it. Because if they do it will go one way and one way only. They are on the stock exchange and right now in 3 years their shares have falled from 50+ to below 15.

But maybe you should go into one of their shareholder meetings and tell them not to worry as the calculator division is posting  profit ;)

  Your sarcasm is really childish but its ok.