cdude, he said Sony, not the PS3. He could just mean as a company as a whole rather than in the little-minded console fan-boy wars. >_> I kid, I kid.

Anyway, considering iSupply's methods this could very well mean Sony is already break even (minus admin/marketing) on the PS3 hardware. iSupply tends to go by part costs and Sony not only buys them in super massive quantities for lower prices but also make some of their own parts. IIRC, we did hear reports awhile back saying that Sony was break-even on the hardware minus the extras.

wonder why Nintendo numbers are down.

did they lose a lot money on other stuff they make or invest in?

cause wii is making billions!

Practically every company went down due to the financial meltdowns and associated events.

Nintendo in particular is negatively affected by the Yen's strength (like all other Japanese exporters). This will reduce their profits, but fortunately Nintendo has very high profit margins so they'll still be making profits.

impressive since they dont get revenue from online services. mainly games and console.

the wii should be dirt cheap to make to gain those profits.

No chance at what?  Staying in business, they do (bit rough).  Remaining in the videogame business, probably.  As far as regaining their past dominance this generation, any idea how the PS3 beats the Wii and the PSP beats the DS?

For one stocks are pure bs, some bs news they go up some other bs they go down. Feel sorry for the fools that get sucked into it, its just a way to control the masses.

Every one and their granny knew for a long time a price cut was coming in first half of 09

Yes, again stock issues are more of a joke.

Take Wal-Mart for example - the only major retailer that has constantly pulled larger quartely profits and increasing sales every month (not even Target pulled that off) yet their stock has gone down several times.

Nintendo is in a dominate position because of all the money they make. Unlike other console makers they can probably keep the Wii at $250 if it keeps selling at this rate for another two years - Sony and Microsoft have to cut the cost to sell more.

With how the economy has pushed people's spending lower, a falling stock price and missing sales forecasts are not as bad this year as they were in previous years ... Sony (as a company) has a lot of problems though

1. Sony (in what appeared to be a good move at the time) built a fairly large financial and insurance division in the 1990s, which was one of their most profitable divisions leading up to the credit crisis, but in recent times is much more of an unknown liability (like every financial institution around the world)
2. Sony's Electronics are positioned in the market as a luxury brand and (in recent years) have been facing increasing competition from other premium brands as well as the rise of inexpensive Chineese manufactured products. In order to maintain their market position they have to spend a lot of money on Research and Development which means that (even with massive revenues) the division struggles to be profitable. Recently, the slowing economy is making people more careful with their money, and Sony is positioned to be a big loser as people favour inexpensive products over luxury items.
3. Sony's gaming division was (in my opinion) their strongest division because the division would take small losses up front when launching a system, soon reduce costs on the console to (essentially) breaking even, and pull in a lot of money from licencing and game sales.

Sony also has several other divisions, some of which produce content like movies and music which have their own problems and strengths, but I think I covered the main ones that are hurting Sony at the moment.

I guess I'm not understanding well. Speculation is that the PS3 is nearing the breakeven point where they will no longer be taking a bath on each one sold. That means they can get into the black on the unit... Stating that the price reduction will allow them to now cut the price just puts them right back where they are now... If they do cut in the spring by $100, they will be back to losing at least $100 per console. If they plan on selling 10 -15 million units through 2009 (which would most certainly happen at $299!), write off another $1 to $1.5 billion. Does anyone really believe Sony would do that?