PS3 and Xbox 360 both have had or are about to have price drops of some sort.

If Microsoft lowered the price of an XBox360 to $10 and therefore took a huge lead in the console wars numbers would it be a victory?

At what point does it become a desprate measure and a joke?

With most products I'm sure 'when it loses money' would be the answer.

We're going to find out in the next couple of earnings reports.

When the people that work for you say a pricedrop is more than a year away and deny a price drop up until the day before the official announcement even after all the evidence of it going to happen.
But then, you also don't want to stop sales so I can somewhat understand.. but at that point, just ignore the pricedrop questions.

It's a joke if the console becomes so unprofitable that a company can't afford to develop a new console for the next generation. Obviously, this test only works in hindsight.

i think that PS3 100$ price drop in Summer and less than 1 year after its release, is somewhat a desprate move (especially if it's true that PS3 production costs still exceed 600$) ...i honestly expected a similar price drop in October/November but apparently Sony couldn't wait (and if sales don't take off another price drop is more than likely: 2 price drops in 12 months isn't something that i usually link to a successful product, do you?)

Didn't the original Xbox and Gamecube get price cuts 6 months in?

Price cuts happen all the time to spur sales. It's neither desperation or a joke.

 and would you define xbox and GC succesful produtcs? 

 I would say they were both succesful. XBOX was a first run for Microsoft and managed to gain significant marketshare and while the Gamecube did not sell many units worldwide, it did make Nintendo money. Neither can be compared to SONY's PS2 but they did positive things for each company separately. 

let's make the question in a different way: how many millions of PS3 do you think sony had planned to sell by Auguts 2007? i bet that 4.15 millons by august 2007 is well under Sony's worst case scenario.

I actually think Sony was very smart in cutting the price... who cares if th system was only out 8 months. It gave the people what they wanted.

However, Sony's whole announcement or plan of dropping price only to raise it back up is what I would consider a joke. I don't think they will actually do that, because if they do it would be really stupid. I guess the only reason they are saying that is so that people are not waiting to buy the 80gb unit.. so I understand what they are trying to do... Just sounds bad