It probably costs about 500-600 bucks to make a PS3 right now, so Sony is probably losing about 100-200 per console sold.

Microsoft and Sony are doing the right thing by focusing on profitability, no one is catching the Wii or DS this generation.

@waron

did the PSX & PS2 have mums pre-ordering a game ACTUALLY PRE-ORDERING a Video Game (Wii Fit)

 That only proves how successfull is the Wii compared with the PSOne or PS2 :P

about time. i mean come on we all need to remember that these are companies that need to gain profit at some point and not nother about sales that much, i mean come on if sales were so important they could put the ps3 at like 200 pounds 150 pounds and outsell everything.

oh so now i know. if game for a console isn't preordered by soccer moms this console is for core gamer. so when people were buying psx just because it was cool thing to have it didn't mean that it was casual(i hate this world cause we all are casuals - we are typical gamers. thats what it mean). even though probably more than 50% of psx/ps2 games are casual titles psx and ps2 still weren't casual. how come that no one was crying when those games were coming to ps2 which was winning console, but it's huge problem for them now when ps3 is last one and none of those games are being released for their console? how come you all praise lbp when it's casual title and still can hate wii because it has casual titles? do you people can't see that the same was happening with ds: for first few months most titles were for casual, but now we have plenty games for both casual and core gamers. i'm really tired of all those "wii is for casual gamers"/"wii is for kids"/"wii isn't competing with ps360" etc.

i think that sony should release 20gb SKU it should be cheaper to produce and would be enough for everybody. 

Looks like something like this happened:

Gaming division: "If we do one more 100€ price cut, we can blaze past the 360, and compete with the Wii!"
Main Board of Big Suits: "And how much would this cost us exactly?"
GD: "Ummm... we might go profitable again in 2011."
MBoBS: "Screw market share, we gotta make some money to keep the shareholders off our backs."

Might very well be that something similar is happening with MS and the 360. They could boost the sales a lot by cutting prices, but would much rather make some money for once, ever if the PS3 is catching up, and the Wii soon reaching the stratosphere.

I think Sony and Microsoft are in somewhat in a standoff with guns that have broken barrels. Who ever fires there gun first and give a price cut will hit the other guy but they'll hurt themselves aswell. MS seems to have the broken revolver, they'll hit sony hard and damage themselves alittle. Sony seems to have a double barrel shotgun in this standoff though, one barrel pointing at MS (which will hit them very hard) the other pointing back at Sony (which will hit just as hard).

So if Sony drops the price of ps3 and still loses money by the end of 2009 but catches up to 360 in total sales... is it the winner of the next gen war?

Such as?