Im not sure what they intend to do really. Its all down to their goals, but they have stated that they want to sell 10million units this financial year and if they can do it without a price cut then perhaps they will, and they may forgo the market share losses in the short term to win back profitability and investor confidence. I don't think the investers are going to tolerate them going any further into the red to support their Playstation/Blu Ray goals.

If they have a big price cut I may get PS3 this year, the price of a PS3 is at $480 SGD and if its a $100 price cut I am sold.

No, as per stated strategy to investors. Their plan is to be profitable, not to sell large amounts of hardware.

This is especially true in a year of decreasing profits at Sony. The last thing they need is shareholder revolt.

NJ5@ In order to be profitable they still need a level of market share , if the XBOX 360 was to start outselling the PS3 by large margins then it may force Sony's hand.

I think the success of the 360 will be the determining factor of a price drop , keep in mind though that the 360's price drop did nothing to damage PS3 sales in europe , it only stopped the 360 from becoming irrelevant. A price drop would make the 360 more competetive but then I don't think it would affect PS3 sales too much.

Only time will tell really.

I think he's laughing more at your implication that Fable 2 is a game that would cause last generation holdouts to upgrade to a new next gen system. And I have to agree with Mafoo.

OT: Definitely no price cuts, but expect to see bundles galore starting in the beginning of November. Bundles cost very little and there's no way they're going to standstill come holiday season when MS has $200 system on sale. Also, I must say, I always thought of the arcade as an irrelevant waste at $280. But at $199, they've really hit the sweet spot for mainstream success. Even I'm considering "jumping in."

I would expect the new 80GB PS3 model to get a $50 price cut for the Holidays. Shrinking the Cell and GPU, smaller heat/power requirements, combined with no BC and cheaper Blu-ray drive prices should allow them to about break even on this model.

I would expect a 160GB model, hopefully with BC still, at $450 as the second SKU.

People swore Sony could not possibly have a price drop last holiday season, but it happened anyway.

Of course Sony will drop the price this year. They will lose even more on each console sold, but they'll make up for it in volume.

$50/30Euro/£25 I think will do just as an incentive in about start of November. £275 PS3 is enough to make a difference.

But I doubt they will do this. they need to stay profitable. Any reduction of price in US is just more loss no doubt. They might wait until they can at least make a little money off a price reduction before they reduce it.

I think we'll see some holiday bundles from Sony. The 80gb drop in September will be the only price drop for Sony this year, IMO.

It's also interesting you didn't mention LittleBigPlanet. It's definitely not a guaranteed success, but I think out of all the games coming out this year, it certainly has the most buzz in the gaming world. If Sony can get some mainstream news companies to cover and hype the game (ala Nintendo), it could keep the system competitive with the 360 all on its own.