Big company? Yes. Lots of cash? Not remotely. Take a look at their own financial reports sometime: they're actually in serious trouble. A couple of weeks ago they very nearly found themselves on the wrong end of billions of dollars in debt -more, in fact, then their current cash reserves- coming due right then. Sony was able to avert that, but not by paying the debt: it's still there, and it will come back to bite Sony again, especially given the current economic conditions.

Many Sony fans have honestly been wondering why Sony hasn't cut the price. One thing to remember is that Sony has a business. It has one purpose, and one purpose alone: to make money. All other concerns are secondary, and the only other question is whether or not it is better to make money in the short term or the long term, and that question has different answers at different times. Right now, Sony needs more money in the short term. If the PS3 can make more money (or, more to the point, lose less of it) in the short term at its current price and sales than it would make with more sales but a lower price, then Sony will follow the path that meets its current needs, and that means no price cuts.

In the long term, this strategy makes no sense at all. It cannibalizes the possible long-term gains that you mention and cling to. I understand that, and undoubtedly Sony does too. But right now, Sony doesn't have the luxury of thinking in the long term: it has short-term needs that absolutely must be satisfied if the company is to keep operating, and that requires a different way of thinking about things. If you still choose not to believe me, that's fine, but I challenge you to come up with another way to explain what Sony is doing right now.

Actually I think the debt which expired a few weeks ago was not bigger than their cash reserves. That is if you're talking about this report:

http://www.bloomberg.com/apps/news?pid=20601101&sid=aEXJ1SkWAj.8&refer=japan

What this may mean is that the $7 billion in cash I mentioned before may now be less than $5 billion... It will be interesting to see their next financial report

Dont believe any of the bull $hit that these sony haters are coming up with, they arent analysts, or work in the companys they dont know how much a company makes or losses, at all.

They are just saying it because to them its pleasure that a company like sony is having trouble, they are FANBOYS.

http://finance.google.com/finance?fstype=bi&q=NYSE:SNE

http://www.vgchartz.com/forum/thread.php?id=53747

In that thread the link to MCV goes here:
http://www.mcvuk.com/interviews/394/Action-Station

of which the most important bit is this:
Firstly, can you give us an update on the progress made by the Sony games business this year?
Two years ago we lost $2bn dollars globally on the SCE business – we thought at the time it was a lot of money, but in perspective with things like Citibank it’s not that much. And last year we lost $1bn dollars.

Our target this year is to break even, not on a cumulative basis, but on an operating business. Our point of view from the 100 markets we work in, we have PS2 which we’re making a profit on, PSP where we also make a profit, and PS3 where, if we just look at it in Euro terms, we are in a profit on software even though we still make a loss on hardware. It’s likely we will get into profit in Europe this year. So SCEE is a solid, safe pair of hands for SCE.

(David Reeves, president of SCEE speaks the unbolded part)

So from what he is saying, it seem the European PS3 division is the nearest to making a profit, in fact he is expecting the PS3 division (HW + SW) to be making a profit before the end of this year (fiscal year), but that is PS3 as a whole, so the Hardware alone will still be making a loss even in Europe, though it is impossible to tell from Sony by how much money per console.