superchunk,

Sony can get money EVEN when they lost money on the PS3. So if they want to boost their offer
(more PS3, =more games), then they will do a price cut.
Also remember, BR player = BR sales = more money
and also, they were able to cut the price by 100$ before EVEN if they were losing money for each PS3 sold. Now they are getting money, it is much easier.

(note that I never stated they will do a 100$ price cut. But they can do it if they want)

I don't know how much credibility I'd give these guys. They're the same people who said Nintendo makes 75 euro per Wii sold in Europe. Don't get me wrong, I'd be overjoyed if they made that much. If they really make that much profit, my wallet is going to bust come Thursday when Nintendo states its financials.

I think sony is almost braking even on the hardware of the ps3 they keep revising the ps3 on a regular basis every time they do that it becomes cheaper to produce

it may depend on the currency they buy there hardware parts, if they buy it in dollars they are making profit in Europe and Japan and some loss in US . If its in iens Europe may turn a little profit and US and Japan some loss

either way i thing Europe is turning profit for sony at the moment and since its sonys main market it offsets the losses in the other territories

 So sony cutting costs some how shows they wont sell 100 million, LMAO as if they did not cut costs on the PS2 ?  Wow you truely have to be a pathetic fanboy to come up with such delusional bs from cutting manufacturing costs.

If there's another price cut then this has to be the quickest descending console (in price) in history. Its really up to each on their own to decide whether that's a good thing... Shows me that (if they cut the price again this year) that they (Sony) know they messed up with the insane launch price.

Sony's financials are coming May 14th, 2008, 3:00 PM JST

http://www.sony.net/SonyInfo/IR/info/presen/index.html

a little later than usual.

The article above is based on an engadget article and it says:

Nikko Citigroup upgraded its rating on Sony this morning in anticipation of it breaking even on PS3 costs earlier than expected. At the moment, Sony sells the PS3 at a loss. The respected group of analysts is now earmarking August as the milestone month. Sony's CFO recently suggested that the move would occur in the second half of the year -- a date analysts then pegged at November. No details behind the new upbeat expectations were provided by Nikko CG. However, it's safe to assume that the PS3's break-even event will be realized by a switch to a sub-65nm cell processor, sub-90nm RSX graphics chip, or both, since the smaller chips are less-costly to manufacturer.

P.S. It's worth noting that Sony has consistently stated that the PS3 will only break-even when both the Cell and RSX chips have shrunk.

Update: Reader Yaddam205 just reminded us about the "Slim PS3" redesign rumored for release in Autumn. No guarantees but smaller, less power-hungry, and cooler running chips would certainly be at the foundation of such a rig.

If Im not going crazy, breaking even means 0 loss and 0 profit. Isnt it a bit misleading to say that the each PS3 will be profit-making in August when the article clearly says breaking even? That means there is still some time to go after August before PS3 makes any money per hardware unit sold.

Please Im not trolling, its good that PS3 is focused on hardware so its cheaper for all of us. I just read it and didnt get how breaking even suddenly became profit-making in the next article.  If someone can enlighten me Im all ears.  

Maybe by breaking even they mean that they will have made money off of the PS3 era? That just a guess btw don't hate on me to much. I have no idea what to believe from these guys as there was a report at the beginning of January that said that Sony was selling the PS3 at or near even money and that they had been making money off of each console sold in Europe for a while because of conversion rates. It is natural to assume that they have reduced costs since then. So maybe they think with the continued success of the PS2, improving PSP sales, and improving sales of the PS3 turning a profit Sony's game division will erase the 3 billion loss quickly? Who knows. They never get to specific.