If convincing yourself it is possible for Sony to lower the price tag lets you sleep at night, that's fine, but you're not going to convince anyone norgoing to change reality with wishful words that play on the absense of definitive proof. Your logic that Sony could feasably lower the price of the PS3 based on what you claim we don't know is no more sound than claiming the President is a robot made by aliens and we wouldn't know it if it was true so it very well could be true. You're just stretching the burden of proof to ridiculous ends to suit your own wants and desires.

 However with the gaming division of Sony making a huge deficit last year we must assume that the PS3 is currently selling at a loss. This is at $600. It would take a long time to more than halve your production cost even with cust cutting such as dropping the EE. Its fair to say that Sony almost certainly cant sell the PS3 for $300.

Neither BR or HD-DVD can dominate until they reach mass market levels. 

Dude what are you smoking. Give me some of it. First of all EVERYTHING says that Sony can't afford a $300 dollar price cut (they need a $100 one minimum though). SCE lost more money than Sony as an entire COMPANY grossed during the last fiscal year and that was while only losing 200 bucks per PS3. If they lower the price to $300 that would more than double their profit losses, completely bankrupting not only SCE but Sony as well.

Second, BR lead over HD-DVD isn't that big, and both of them are complete flops. Both are gaining so little ground at all on DVD sales that BR is a moot point. No one cares. The picture upgrade is nowhere near worth the cost of the player and the cost of 30 bucks a movie. By the time BR has killed HD-DVD something much better will be out and BR will die instantly. Everything is moving towards movies being downloaded rather than purchased on any disc format. Why does every person with a game system think they are suddenly an electronics expert?

 Edit: Before anyone says they will gain ground when HD-TV penetration is higher, I own a 42 inch plasma and have no intention whatsoever of changing formats.  I know a lot of people who are the same way.  Hell, I play my Wii and PS2 on that 42 inch plasma.

 Last quarter you mean, not last fiscal year.

yeah thanks ckmlb. Sony just can't depend on their format. I don't think they want to either. They are trying to get the great games out there it just takes so long to develop for the PS3.

apperantly you think you are a electronics expert.

Any proof sony cant afford a price cut, NO. Just your opinion. Like i said before 65 nano chips, no emotion engine and Br diods that went form +$100 to below $10.  Its obvios you have no clue how much it will save in hardware costs.

70% of USA market, +90% of Japan, +80% Europe, yahh not a big lead.

Br is out pacing dvd, the first Br movie to hit 100k did in it half the time it a dvd to hit 100k.

what we do know is you are posting nothing but fud.

It is weird everybody here thinks that blue ray is doing better than HD-DVD. In spite of possible backlash I think I should point out that the whole format war is a storage format war. Obviously the movie industry is important, but maybe more important than the movie industry is the computer industry. Do you really think that Microsoft is going to support the blu-ray over the HD-DVD without a very very hard fight? I mean if it really is important for Microsoft, they will just sell the next Windows iteration (and office iteration) on an HD-DVD and everybody will be forced to buy an HD-DVD rom at least. Since Microsoft windows and office are the most sold DVDs nowadays, I am pretty certain they could "win" the format war. It all depends if Microsoft is willing to take some losses or not.

 Yahh they are backing hddvd so much they did not even include it in their Elite console, add ons dont win format wars.

 MS could care less about hddvd, they arent making money of it.  They only got the hddvd add on to compete with PS3s ability to play hd movies.

Well, reasonably intelligent speculation suggests that Sony could not afford a major price cut on the PS3 for quite a while. We really don't know what Sony was spending to produce a PS3 but analysts estimated that it would you(approximately) $200 more to produce the PS3 (without controllers, packaging, and other associated materials) than Sony was selling it for at launch; these estimates would include volume discounts and what not.

No matter how you look at it Sony would have a great deal of difficulty reducing the cost to manufacture the PS3 to a level where they could justify a $200 or $300 price reduction this year; likely this will have to wait until Sony switches to a 45nm process and does an internal redesign of the PS3 (2009 at the earliest).

Sony launced the PS3 in Q4 of 2006 because it was the latest they could hold it off to (without giving up too much ground to the XBox 360) and they probably set the price at $600 because they could afford to sell the system at that price after the 65nm process was used and their received the benefit from mass producing Blu-Ray diodes.

It is winning because obviously you are only looking at the movie industry. Once again if Microsoft sells Windows on an HD-DVD will you or will you not buy a HD-DVD rom? I mean obviously you are pro-sony, but won't you be forced to but an HD-DVD? - Unless you use a mac;).

On another note, I guess you do agree with me after all. What I was trying to say was that Microsoft only supports HD-DVD to go against Blue-ray. IF it really wanted to it could almost easily wipe it out with office and windows.

Just to clear things up, I really am hoping sony wins this format war, to me it is just plain out strange that sony is labeled the "unethical" company while they refuse to give special deals for the porno industry, while MS and Toshiba are probably only count on the support of that industry.