I don't get why PS3 fans are getting so exciting by looking going into a thread that conveniently ignores all the arguments against your point. You just look like a bunch of desperate fans grasping at straws. Stop looking at things with Rosy colored glasses, welcome back to reality.

We all agree they are dropping costs its just that it is completely offset so far by the strengthening of the yen and the quickly falling ps2 sales. Sony headed for profitability in 2008 until the yen strengthened 25% and PS2 sales dropped 30%. Again i'll repeat what i said before because this thread really says nothing new, Sony lost 350 million when it was 105 yen to the dollar, it is now 90 yen to the dollar. Things may improve but Sony doesn't have a lot of control in the situation. They can probably cut the price next year but it might move back any profit they could have made a year further back.

Next year they will hit the break even point with the PS3 more than likely, but is it really good enough just to break even then go back to a $50-100 loss? I mean maybe it'll happen but after all the damage the PS3 has caused I don't think the higher ups are gonna allow then to do it. The probability of a $50 cut would be a lot higher than a $100 cut, i think that's completely out of the question unless the exchange rate drastically improves..

As far as the 2009 release schedule goes, that pretty much happens every year. You really don't know what is coming out in the second half of 09, and GT5 is a huge question mark. I really doubt it'll make it in 09.

if the USD continue to plummet the next 6 months there will not be any significant price cut($50+ and above). Most likely a $20-30 cut but not a $50 cut.

then our next question is wether a $20-30 is enought to cause a significant impact on sales?

A $20-30 cut could be worse than no cut at all. It could lead people to just wait for the next small cut, otherwise it's so small as a percentage of the price that it doesn't have much psychological impact.

nice topic MM, while reading I was like wow, this site is actually making a good point, and I was expecting a link at the bottom LOL.

They could cut $70 in USA and 100€ in EU, where PS3 is overpriced, this would take US price to $329 and EU to 299€ (VAT included), that's roughly $420 including VAT and $350 without 20% VAT, EU price would be still higher, giving Sony an higher margin right here where it sells more.
Such a cut in Spring would cost less than $100 in USA and 100€ in EU, would please Europeans for the reduction of price disparity and would leave room for a less painful $50 cut in Autumn, should it be necessary.

have fun in la-la land, i'll be here in reality.

WITHDRAWN - You guys want to be happy, be happy. I mistakenly thought the thread was about getting things fixed.

Grampy - You do know that not all of those losses you put are from HW right? Like I've been trying to tell people. R&D on Psp3000 probablly took a good hundred million. PSP4000 is already in R&D and PSP2 is most likely in R&D. Sony also didn't say "Hey let's take things out for the 40gigger" That too had to be researched and developed. Along with the 80gig and the other 80gig and the 160gig and most likely the slim line that is to be released in the future is in R&D too.

Now include SW that has been in development that hasn't been out yet so it is just draining money without bringing any back like.... KZ2, HOME, GT5(Prologue stoped selling already), and other titles. With KZ2 being right around the corner and HOME already released the money spent on them wont be so much anymore.

Then of course the loss on HW. But it isn't that alone like you (and most other people) make it seem.

PS3 is doing fine and I cant be bothered reading the rest of your post after you said the Ps3 lost those billions.

@ Max, Yes I try to be informed so I studied the entire WSJ article and I believe I understood it pretty well. I haven't heard anyone fron Sony refute any of the figures. In my experience if the figures weren't solid they would have spoken up; WSJ articles carry a lot of clout. And for the record, I never said the PS3 lost anything, the figures were for entire division and I do not know the breakdown.

My mistake was to try to be constructive in a serious discussion. I didn't realize that it was a feel good party. I didn't intentionally rain on anone's parade. So I withdrew my posting. 

When I see that if Sony had gone out of the Video game industry in 2000, they'd be better off today, and if the had quit entirely in 2005 they'd not only be better off but they would have had enough to make up losses in the rest of the company and saved all those jobs ... it strains my definition ofdoing fine but I yield to your greater knowledge. 

^lol so... MS cutting jobs is because of? I doubt Sony wouldn't have cut jobs even if they left the console business.