The goal of any business venture is to make a profit, not to break even. If it takes so many games just to break even, it's unlikely you'll ever see a profit.

The price cut would bring more ps3 sales and more software sales since more people will own a ps3 with the price cut, therefore in my conclusion if sony does drop the ps3 to $399.99, it will gain some popularity a long with more software sales for sony cutting there losses in money.

If Sony lose anymore money on the PS3 won't they risk having the stock holders and investors pulling out on it? If I not mistaken the PS3 is already treading on thin ice with how much its costing Sony. If price cut gamble doesn't pay off holiday season then I think its fair to say the PS3 stand a good chance of being discontinue. Sales wise the PS3 isn't doing that awful, its just money loss wise that its really doing terrible. Even if Sony could pool money from other divisions into their gaming that doesn't stop the investor and stock holder from killing the PS3 if they see it as a threat to their investment. If Sony was truly a self autonomous corporation, then they'd be fine, but they're not, like every major corporation they're publicly shared and when money gets tight, like any business, they're at the mercy of that factor.