You people are basically a bunch of sheep. The media is not a credible source of anything. (yes the ps3 is loosing in sales figures, but other than that)

Sony knows what they are doing, and with the overpriced machine that they have to work with, they are doing the best they can.

The PS3 has the most to offer, they have the best games now and going forward. A deeper HD 1st and 2nd party development backing than any other console.

Microsoft has more games. Not better games

Next year, the games will continue and the price cut will come, and sales will rise. Eventually they will pass Microsoft.

Microsoft has pushed Sony into a corner and is attempting to do to Sony what they did to every other major software developer for PC's.

Sony will not quit. Quitting would be dropping the price before they are ready to.

Yeah, the hate all belongs to the PS3...

http://www.forbes.com/home/2008/05/02/wii-grand-theft-tech-personal-cx_bc_0502wii.html

ROFL!

Arent you basically doing the same thing you accuse others of doing to Sony?  Who is it for you to say that M$ is going to be in the red?  From my understanding even with the price cut overall they are breaking even or making a little profit for every arcade and making decent sized profit on the Pro/Elites?  

Sony and M$ will probably make money this quarter on their gaming divisions.  I guess we will just have to wait and see who makes more or loses more for that matter.

Microsoft doesn't have to fight the Yen. Nintendo has to deal with the Yen, but their margins are huge so it isn't as critical for them. The Yen is enough to put Sony into loss simply because their margins are so low.

Are you the same person I talked to last week? This argument is so pathetic. I have never seen people so desperate as to claim a company actually wants their marketshare to shrink. Its like the Sony execs gather in a room and someone stands up and says, "I have bad news everyone, we actually sold 370k consoles in November." The room bursts into rage, "G%d &*(^it! Who the ^&%$ is buying our console?!?! We don't want market share! If only we could find a way to sell negative amounts of PS3s!!!"

While this is a dramatization, this is what I see in your argument. It is simplistic rationalization. You think these articles spamming the net now don;t make stockholders "nervous"? Ugh, its useless to reason with diehard Sonyphiles.

Sony doesn't want their marketshare to shrink.  Where did I say that?  They want to be in the black.  They've said that countless times recently.

I'm not "arguing" anything.  You're making an issue out of nothing.  I'm merely stating that Sony probably made this decision to live up to their "in the black" promises to stockholders.  It doesn't take a rocket scientist to figure out that a price cut, while it would gain them marketshare, would not put them in the black.

Given their situation, Sony is doing fine.  If you disagree, try to come up with some reasoning, instead of spouting hatred and BS.  Logic works so much better.

Since you've got it all figured out... what would you do, in Sony's shoes?  How about if you were MS?

I would have chosen exactly what they both have done.  Neither company has made any sort of grievous error, and I'll maintain that, no matter their next quarter financials look like -- because I strongly suspect that I'm correct.

Since you've got it all figured out... what would you do, in Sony's shoes?

1) Fire everyone invovled in the marketing department and hire someone who has a clue.  

2) Start bundling LBP with the most expensive model PS3, and uncharted with the cheaper.

3) Add some type of incentive for people who already own a ps3, to get their friends and family to buy one.

Given their situation, GM is doing fine. See the logic there?

Sony is not doing fine. The balance sheet is only going to get worse.

Am I saying Sony is doomed, NO!

I'm saying Sony is hurting and the PS3 situation isn't helping any.

That doesn't make me a hater. That makes me a realist.

You can't change the past. No matter what Sony has done, to get into their current situation (and their games division, frankly, is one of the better performing parts of the company at this time), all they can do right now is make good decisions, and climb back toward decent profits. I believe they are doing just that.

You don't have to have big marketshare to make decent profits (although its usually preferable). You just have to have enough to justify your console's existance to the 3rd parties. I would say that Sony is still well within acceptable limits, in that regard, although they clearly need to do something next year to retake marketshare. Doing something drastic in the short-term, however, may very well be a decision they cannot afford to make.  A price cut drastic enough to compete with the $300 X360 Pro, and its little brother, I think is out of the question -- perhaps until Sony begins to manufacture PS3s with 45nm Cell CPUs (which they have stated would be happening mid-2009).

Microsoft's situation was completely different coming into this holiday season.  They needed to do something drastic, or they were going to fall to 3rd place.  That picture was pretty clear, around mid-year this year.  They had significant delays getting the Jasper (their own 65/65nm unit) out the door, so I'm near positive that's going to hurt them pretty severely next quarter.  They were producing Falcons that actually cost more to make than the Falcons last year did (they used higher quality solid capacitors, to reduce RRoD issues starting around July) up until late October.  That was *well* after the cut.  That means there are *millions* of X360s that have been sold at a significant loss this quarter.  If they could have cut the price earlier... they would have, I guarantee you.

I believe that both Sony and MS have been making good decisions in this regard, and I'm surprised at all the media hate (for Sony). Sony deserved the media hate last year, not this one, IMO. The media is going so overboard with it this year, its almost as if they are doing some sort of stock tape-painting for future Sony stockholders.