It's amazing how many people think a drop of 20nm on one component will somehow reduce over $150 off the cost.

what are you talking about?  Ever heard of the gamecube? 

I don't know what you mean by "superior consoles," if you mean power then SNES and N64 were not inferior. 

All of that is beside the point, Nintendo has shown us that you can go from a bad 3rd place to dominating in 1 generation.  It's much easier to do that then it is waste all your money trying to make a 3rd place system slightly more successful.

highly doubt that sony will cut the price that early in 2009.

Process shrinks are a landmark, not the whole picture. When they transition to a smaller process node they can use cheaper heatsinks, motherboard componentry (Power regulation especially) and power supply units on top of any savings on the chips themselves. Furthermore as a process matures costs go down even more as the proportion of good/bad chips per wafer generally improve with time.

Guess Pachter finally realizes he's a joke or at least the way he portrays his profession as a joke. I don't know which. Your call.

I'd say a springtime pricedrop isn't that far off but I have no idea what Sony will do. I really thought they'd do a pricedrop this holiday season to compete but they didn't.

Dreamcast came in last place.

It will be like their big releases. "Look at these 20 reasons to get a PS3 in 2007, er, 2008, er, 2009.."

If Sony waits until the 2H of CY2009, it will have the kind of impact Lair had on games. And that's because Microsoft will be eyeing another price drop or bundling more value in with their system shortly thereafter.

There are a few people who disagreed with me and you can argue all you want but I'm right, you're wrong. Deal with it. In many fields of business, image is important and that includes the video game market. Once a company loses it, it can take a long time to recover.

The Dreamcast was a great system with many excellent games but had trouble because of their past failures. Gamecube also was a great system but didn't do very well because both gamers and developers didn't head to their system nearly as much as the other two systems out at the time. This was because of the N64 not doing well and hurting their image. Nintendo reinvented their image with the Wii and it proved to be a success obviously.

So image does matter and no matter what some of you think, Sony does need to worry about their image. As I said before, Sont can't afford to so far behind and almost forgotten with the Wii dominating and the 360 really starting to pull away. Sony needs to get the PS3 back in the race. And as someone said to me about it not being that hard to figure, they should've asked themself that question since they have no understanding.

Software is what makes the company money. So while Sony would rather not lose money on console sales, they don't have much choice, do they? That is unless they like being a distant 3rd place.

Sony doesn't need to aggressively cut the price of the PS3 if they don't care so much about market share and that their priority is profits. A lot of ps2 owners are switching slowly but surely. They are not in danger of going extinct but with a price cut, they might lose more money than earn with larger market share.

sony should do whatever they want.. and isn't pachter always wrong?