Sony is already on the record for estimating a $500 million loss for the gaming unit.  If they had to eat another $2 billion, it could be very bad. Consumer spending could wind up being down in the next year, which would make hiding a big gaming loss impossible.

Sony stock has been performing very well lately. It's at a 5 year high, as a matter of fact: http://www.bloomberg.com/apps/news?pid=20601101&sid=ap8ivR5Bqqj8&refer=japan Their gaming division used to be the bread winner, but now their televisions and movies are. Playstation is being carried on the backs of their profitable divisions. It's the least they could do, since Playstation has carried Sony for the past 10 years or so. They will cut the price. Believe! lol

The only path Sony can take to avoid having to declair the PS3 a commercial failure is to lower cost and keep the sale price the same in hopes of gaining more revenue. They just simply can't afford to lose anymore than what they already have.

Its also well wishing to think the other divisions of Sony will give an arm and a leg to the unsuccessful gaming division.

Jesus H. Percy Christ!

Aren't you an unpleasant boil!

Them acting recklessly is by not doing nothing with the PS3. It isn't moving, and people are vocal and adamant for a price cut.

What good are people's adamant vocalizations if it quite simply just can't be done?

Might I also point out that there already was a price cut in Japan and you can see for yourself the lack luster results that had.

Says who?

You!? The insider of all things relating to Sony!?

This isn't a company that has been spending it's time in the red. This isn't a company that relies heavily and importantly on it's gaming division for revenue.

They have a lot of things riding on the PS3, and to think they will just sit as an idle duck is asinine.

They already got rid of Kutaragi for losing so much money. Pretty clear signal from the head honchos that losing piles of money is bad juju.

Personally, I believe that Sony should reduce the price of the PS3 by $200 ASAP in order to give it the opportunity to come back later on in the console cycle.

I expect Sony to hold off on the price reduction assuming that its game releases for the rest of the year will give it the necessary boost it needs; compared to the XBox 360 and Wii the PS3 will sell poorly, and game sales will end up disapointing all third party developers. In 2008 as publishers start eliminating support for the PS3 Sony will attempt to reverse the negative momentium of the PS3 by reducing the price to $400; the price cut will give a massive immediate boost in sales, and the monthy sales will improve, but it will still be selling at a much lower rate to the Wii and XBox 360.

Sony's delay to introduce a price cut earlier will lose support from many developers, eliminate exclusive and multiplatform PS3 games, and will ensure the PS3 never sells well enough to even challenge the Wii.

They also released him because he made decisions on what was to be in and not to be in the PS3 on his own whim and not consulting with the higher-ups.

And what evidence do you have to offer to the contrary? Where is your evidence that Sony's other branches will come to its rescue? Are you not aware that they're essentially their own individual companies within one larger company? Where is your evidence stock holders and CEOs won't force the Playstation to fold. Where is your evidence that they even have the money to withstand another loss in profit? You're nothing but well wishing and trying to convince yourselves everything will be just fine.

And what if they do lower the price? The price has already been lowered in Japan, and the results were not anything at all miraculous.

Besides, if the PS3's game line up is as awesome as you say it will be, what do you or Sony have to worry about with the PS3 costing $600? Isn't this the same crowd you said in the "who owns a PS3 thread" that it was well worth the $600. Shouldn't other consumers think like you if thats true?