| libellule said: 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) |
Sony dropped the price last year by $100 even though they were still losing money per system for two reasons.
1. To ensure they won the BR format war.
2. To try and beat 360 over holiday season.
Prior to the price drop they were on a downward slope. $100 going into the holiday season was a big kicker that helped them when they needed it the most. Now they are continuously outselling 360, selling at a rate double that of last year and about to start making a profit on the systems themselves on top of the expanding revenue from BR licensing and naturally higher game sales with the larger base.
Of course they *could* drop it by whatever they want. My point was that Sony is not stupid. They can see the same trending the majority of us see. That is the PS3 will sell significantly less than the PS2. Which also means it will sell significantly less games. Which also means there will be significantly less licensing from games. To me, this means that it is much more likely that they will want to start making profits on hardware asap and thus not drop the price below the cost of manufacturing. I beleive that Sony will be able to drop it by $50 max this year and still be profitable by xmas.
To me the fact that they are not yet making profit and probably won't until 3rd quarter of 2008, it proves that there is no way a $100 price cut is coming. Not to mention they will be happy as long as they are still outselling the 360 and that has already proven to be had when they are about $100 more expensive. So if the 360 gets a $50 drop, so will PS3. MS has already shown in EU that they plan on reducing prices, but not by much. Sony may and probably will choose to match that at best.
@@RedArmia -- I did not say this proved they would sell less than 100m, I said by now Sony knows they won't sell 100m units and that is part of their need to be profitable on hardware this year.
