SONY already know ps3 got alot of momentum due to the fact that the system is $500 and $400 and was able to sell over 10 million worldwide

as for microsoft,they need to price cut the 360 and make xbox live free to have a great effect on the appeal for ps3

If the PS3 breaks even, the whole division is profitable. They will drop price, remeber that the PS3 costs less than 399 to make at this point. When the new 65/65 models are released we will see a $350 PS3 this holiday season.

Also, the PS3 has 2 huge first-party games this holiday season. Well also see KZ2 released before the fiscal year ends, along with in game ads, Qore, and other things to lighten the impact of a $50 price drop.

People who believe Sony will keep the PS3 at $399 are crazy, especially when they have forced mid-year price cuts from Microsoft and are finally gaining momentum. There are many ways to counter losses from a price drop. Software is one of them (Socom, LBP, Wipeout, Resitance 2. All first party)

Sony won't cut the price as it won't make a difference anyway. The console war is over and a battle for second place is meaningless when 1st place outsells you by the margin that the Wii is.

Sony will do the right thing, maintain the price, try to make back as much of the losses as possible, get it right next gen by launching with a reasonable price.

Question:

What is Sony's PS3 shipment estimation for FY 2008?

If answer = 10 million -> Will Sony manage to sell 10 million PS3's at the current pricelevel?

If answer = no -> You're right, Sony will probably cut the price

If answer = yes -> Why on earth would the lower the price if they make their own target?

Do we actually have any evidence of that? The last thing I saw was the Playstation division barely turned a profit, and being that the PS2 and PSP are sold at profit (and across all three platforms they have seen high software sales) the only reason they would have such low profits was the PS3 was still losing money.

You people might be right about Sony not cutting the price.....or they may just bundle another game or even the rumble controller w/ the cheap PS3. Keep in mind that price is not the only tool used to manipulate the sales/profitability dynamic for any of the competitors.

I wouldn't call 1.5 billion dollar loss barely a profit, but maybe that's me. The last real info is that Sony lost about $130 per PS3.

I was specifically refering to their last quarterly update ... I thought they posted a couple million dollars profit

@HappySquirrel:
No, Q4 still saw a operating loss of 12 billion Yen. Nothing compared to the 124 billion Yen yearly loss though.

http://news.vgchartz.com/news.php?id=1155

Q3(Holidays) was a profitable quarter, while Q4(Jan-Mar) was back to a loss.