even the almighty PS2 which quadrupled its compition combined had a pricecut before its 3rd CMAS. Sony has finance guys crunching the numbers right now.

((Potential sales $ from console sales) - (Potential sales $ of console sales with no cut )) times (average revenue per PS4 for games, PSN, etc)= If that number become a positive they drop the price(to the new price in calculation). End of story, or the CFO needs to be fired.

eh let me rethink the formula....

(lost hardware sales from no price cut times average revenue per PS4 sold(games, PSN, etc))
Minus lost revenue from hardware sales with no pricecut= if positive number dropping is more profitable.

The formula is easy, finding the variables is very complex.

I'm not sure what you are getting at. I'll repeat: If Sony can sell as many PS4s as they can produce, there is no need for a price cut.

if they thought they could increase net income by dropping the price and producing more they would. They dont just look at what they are selling, they look at what they could be selling. If the cost of selling more(cost of increasing production and less income per sale) is less the income it would generate they would do that. This is the CFO's job. He gets paid millions to run the numbers on stuff like this (or at least manage the people running the numbers)

Agreed. No need for them to cut the price, until sales start to plummet, if that ever happens. Doesn't seem anything can stop the PS4.

You're talking as if upping production would mean more consoles on shelves. I'm saying: If they can sell as many as they produce then they don't need to reduce the price.

I agree. IF dropping the price means there would be shortages and it would not decrease net revenue to raise production. Obviously at this point Sony does not think the amount of consoles they would sell at a lower price would offset the lost revenue from each console due to a price cut.

I honestly think they could cut the price now if they wanted to, but I think they like still having that ace up their sleeve and sales are still strong at the current price. They are saving a cut for when it would have the most impact... that is why I said September. Thats when they will do it. (Same month they released the PS3 slim I remind you) 

LOL. Basically, the only difference between yourself I me is that you obviously think the PS4 may struggle towards the end of the year because of a lack of AAA titles ... correct? I'm not sure it will because they will have and do have games people want around that time of the year.  Sony WILL up production -- I'm coonvident of that -- simply because of China and an increased interest in Japan.

Yep we were never in a disagreement on anything else. I just get fired up when I start talking finance and logistics.

Let me put it this way, if Sony does not have any big suprises up their sleeve for the fall, I think they will offset the lack of a killer app by dropping the price. They may still have momentum, but I think they would do it to preempt the loss of momemtum where as you seem to think (from my impression) that they will wait until they have lost some and use a drop to regain it.

Oh, no, Sony will have projections and targets. If they don't think they can meet those then they are more likely to drop the price. But we mustn't make the mistake of thinking Sony see this as a race to an arbitrary number. They don't think like your average forum user.