That is exactly my point. MS is making it rain with the stacks they are saving on the production of the 360. Sony is using profits from their other gaming divisions to keep the PS3 in the hunt. And yet, all MS has to do is lower the price to a point where Sony will have no choice but to follow the leader. By then, MS will still be making loot and Sony will be in check.

I just think it's funny that folks are declaring victory - and MS hasn't shown its hand yet. If the Sonyomination is real, an MS price cut will just dent it. It's a fluke, MS will be laughing as they collect their stacks and stop the Sony surge. 

I would like to start off by saying I own all 3 systems and enjoy all for different reasons. Now with that out of the way why do some people think Sony has small pockets? Microsoft last Fiscal report showed profit company wise of 4.6 Billion and Sony 1.8 Billion now these are profit numbers. So you don't think sony can afford to lower prices as much if not more then Microsoft when it is actually waging war on 2 fronts with one machine. It is in Sony's best interest for a BR player and Game machine to lower prices as fast as possible to try to saturate the market with the PS3. Why do you think they were initially fine with losing $240 per console? Also MS's crippling of a systems marketshare that is just nonsense. As shown by nintendo it doesn't matter what place you finish for a few generations you come out with a better piece of hardware that people like they will buy it not because of your previous console but due to the current one.

Ok So what your saying is that MGS4 wont boost sales in america like Halo 3. Yet MGS4 is pretty well hyped right now. Its a shooter americans like shoots thats a bonus straight away. There also KZ2 yes unproven, but once again hype around it is insane. I have friends that dont even care about consoles that say have you seen KZ2 graphics. That Another boost in America

Now For Gt5, the japanise like Gt series. Once thats released thats a boost in japan. thats 2 markets so far. Im not sure how Others go with GT but i do know that they love racing games. Sony already has the momentum in Others. BOOST!

Not to mention sony also has 2 other profitable machines on the gaming market that help them offset the losses they do make with the ps3 besides anything they make off actual Blue ray disc sales will not be seen in the gaming divisions breakdown of their financial reports.

 I am not sure if you know this or not, but MS in in business to make money, and they are not privately held. At some point they have to go to there stock holders and say:

"Well, after loosing 6 billion in this console thing over the last 7 years, we finaly turned a profit. But because we want to stick it to Sony, we plan on losing a few more billion, and with the x-box 720, should tun a profit in 2012. We project we will make back our total lose, of 9 billion by then, in 2018. Oh yea, and sorry guys, but we plan to put a BR in the x-box 720, so Sony will make money off every one we sell."

Sorry, if MS was a charitable organization, I would agree with you.

Sony already has the PS3 repackaging in the works to reduce costs. With MS still trying to figure out how to keep there's from breaking, and that's with a 1 year head start. My guess is by the end of 2009, Sony will be selling there console (for a profit), at a price point that MS will never be able to achieve profitability (probably $199 or $150).

I mean, if Sony had any competition for the PS2, it would probably sell for $89. Do you really think MS could have ever gotten the x-box down to $89?

If you're holding out hope for MGS4, FFXIII and GT5, then you'll be sorely dissapointed I'm afraid. While these will ring in the dedicated hardcores, the console they're on will prevent them from drawing in the much larger ambient audience that was receptive of both the PS and PS2. You'll be hard pressed to win over any casual or very many core gamers with these aging titles. As I said before, even the N64 had sure fired hits like Super Mario 64, Starfox 64 and LOZ: Ocarina of Time.

PS2 is fast declining as the Wii fills its niche and the PSP is another sad story all to itself though while making a profits is dropping off at a fast pace from the holiday sales. Sony can only leech off them for so long.

This persisted belief that Sony can in anyway compete financially with MS has gone from sad to almost insulting that you would expect anyone to swallow such a load. I really wonder if this is an argument you're partaking of or just an attempt to feed your own wanton beliefs that the PS3 will dominate as its predicessors had before it.

As for Blu-Ray profits, last time I checked VHS was outselling Blu-Ray and HD-DVD combined, that's not very much profit to go around I'm afraid especially when you divide it by all the other companies invested in Blu-Ray.

As for the laughable argument above this that Microsoft "isn't a charitable organization". Microsoft has more than enough income to offset any loss incurred in their gaming division. Investors in the Xbox knew from the start this would be a long road as MS themselves even put it, saying they had no expectations to of making a profit off the first Xbox. However if you had to choose between letting Sony take the lead and lose the console wars threatening the possibility of profits down the road or take a loss in the short term and beat Sony ensuring profits down the road, which do you think is the better choice. The 360's recent performance has only instilled faith in any investor who may have been doubtful where as the PS3 is just barely rising above one of the greatest upsets in Video Game History, set a decade back in profits lost and barely edging ahead of one of last gen's joke's, the Xbox brand. Whose investors do you really think are worried?

@ 4D Gamer III

do you wear glasses?

@ White Devil

Do you own a comb?

Seriously though, if that's your best retort than you might be wise to duck out of the thread with what little dignity can be afforded you. Though, from someone who has convinced themselves that there is divine providence for the PS3 yet, I don't really know what else I was expecting in the way of an intelligent discussion grounded in reality. I must admit my own fault here in holding you to too high a standard.

The stupidity of some people amaze me I love reading when people only name a few games that are coming to a system as being thier salvation. There are alot of games coming to the market for the PS3 that are for casual and Hardcore. Also last time I checked GT5 wasn't a hardcore game since when did racers become hardcore?

As for your pathetic financials statement even when the PS3 posted their $833 million dollar loss for the 2nd quater financials the company still almost made 1 billion in profits if I remember correctly. So I guess you are right the PS3 almost made them close their doors cause I could barely get by with that kind of profit.

And the blu-ray market it one year into existance as well it is future money they are looking at not todays. Seeing that the movie industry in total is bigger then the game industry if the get 25% od the dvd market which is more then possible they will be making a ton of money. The only thing holding that market down atm is price but now alot of new movies on Blu-ray are coming out at 24.99 compared to 17.99 DVD only a matter of time before some of the market share swings that way.

More assets do no mean MS has a blank check to dump as many resources as possible on a commercially non-viable division. This is not to say that the game division does not have potential for more future profits. It is profitable, but not if they recklessly dump resources while simultaneously cutting revenues. MS did not become the company it is today with such business practices.

The only way to realistically drop prices without losing additional revenues relative to production expenditures is by cutting production costs. Something Sony has been doing constantly since the first revision of the PS1. Also something MS has been doing since the Zephyr. Cost savings on the Falcon essentially went towards the 3 year repair plan for the RROD. Tiny MSRP cut by comparison. The Jasper will allow for lower production costs which will likely be paired with lower MSRPs.

MS could definitely streamline their product line though. They need to cut the 20GB drive already and lower the price of the 120GB which would make the Arcade more viable as a potential upgrade path model. That would mean a reduction in the price of the Elite, but... as many are already aware, it already looks due for another revision/update, most likely paired with another minor price cut.