http://www.next-gen.biz/index.php?option=com_content&task=view&id=10097&Itemid=2

Analysts at the wholesale investment bank upgraded Sony’s rating on Monday, engadget reports, noting that the platform holder will from August no longer be making a loss on each system sold. The website says that profit-making PS3s would likely feature sub-65nm cell processors, sub-90nm RSX graphics chips, or both, since the smaller chips are cheaper to manufacturer.

Is this factoring in whether they have a price cut or not?

I wonder that as well Debaus, since the article kind of made it sound like they would do a price cut soon, I wonder if they mean it will be profitable and then get a price cut to go back in the red, or actually be profitable after the cut.

edit: nvm the part about a price cut was from someone else's analysis of the article that I read, so this article is probably not including an eventual price cut.

I doubt it, and it is inevitable that there will be a price cut this holiday

price cut!!!!!!!

Didn't Sony announce a few months back that they were already using a 65nm cell and that a 45nm cell was in development. And that they were already pretty much breaking even on manufacturing the ps3. Maybe I'm wrong, but I'm almost sure Sony already announced this a few months ago---not too hard for an analyst to make predictions that Sony has already stated are occuring.

Price cut coming up..

I would think the price cut would put them back at a loss. Depending on how much they cut price, how much they sell, etc.

But to balance that back out, GT5P and Socom are both first party titles, and both of they will make a killing off of.

I think we can officially say that Sony is no longer in a financially touch situation. Also we know a price drop of anywhere from $50-$100 is possible at any point, since I dont think anyone expected them to turn profit this August.

Just curios, after mgs4 releases how much longer will it be for a new finicial quarter for sony? My theory is they will keep the price 399/499 and ride out the mgs4/gta4 effect so that this quarter shows a profit then drop the price accordingly. This is assuming MS does not get agressive and cut their price as well because I think that would force sony to follow up with a price cut.

Yeah thats true. But the analyst is doing it more from a pure cost and parts perspective I believe. So while Sony may have forecast this, the analyst has broken it down by the dollar and seen that they will be making a profit.

So ladies and gentlemen, by Christmas 08 we should see PS3's going for as low as $299, with Home preloaded, in game XMB, and your choice of GTAIV,MGS4,GT5P(awesome),Socom, Killzone 2, Resistance 2, White Knight Story. Also with a new Madden, new Rock Band, new GH, COD5 and with Final Fantasy and God of War right around the corner.

Saaaweeeeeeet.