NJ5. Do u think Sony can cut price in Europe i mean Us the dollar is pretty weak right now but the Euro is pretty strong so maybe they can cut price in Europe.

@Tbone: No. Euro has gone down in relation to Yen even more than USD has. Basically PS3:s "good" financial performance has been due to PS3 performing well in Europe and strong Euro.
PS3 pricecut isn't expected before Yen goes down.

i think you missed the point.

Well here in Sweden ps3 will get more expensive i dont now how much but maybe 20-30 euros due the Swedish krona has gotten weaker.

i dont think ps3 will be discontinued, it may however it remain in 3rd place because of finantial situation or consumers.

Even if they do gain from stopping the losses when selling the PS3, they will definitely lose in the long run when the console and it's games will be making profits. That day will come eventually and while the ps3 will not recoup all the money it has lost, it will lose much less overall if they continue selling it.

The PS3's losses are close to the highest they will go at this point in its lifetime. The excellent games coming soon and the lowering of the manufacturing costs will eventually make it turn a profit (not overall but in particular quarters).

Only if the Yen weakens somewhat, and even then it's uncertain. Besides what bdbdbd already said, there's the fact that a 100 € price cut is actually more painful than a $100 one, since the Euro is still worth more than $1. Also, the PS3 sells more in Europe than in USA, so multiply that bigger loss by a larger amount of units as well.

That's quite big news if it's also true for the rest of Europe.

I don't think I did.

The PlayStation brand is more powerful than the Sega brand. The PS3 has already outsold the DreamCast, and the DreamCast's predecessors weren't nearly as successful as the PS2/PS1. Sega's handheld that gen didn't sell as well as the PSP.

I say SCE is in a much better state right now than Sega was then. I don't think it's quite extreme enough that SCE hardware production would stop.

@NJ5: SEK has gone down in relation to Euro and Nordisk Film propably wants to adjust its profit margin due to weakened currency (plus, to prepare for it going down even more), lower than expected PS3 sales and PS2 dying off.

@Taxman: It could be that they would lose in the long run, hard to tell. If we look at how big brand Walkman is, today after Apple disrupted with iPod, and Sony haven't gone back up with its players, it's only just guesswork how Sony sees it.
Sony has a lot of developers, who could be making software for bigger installbase and gain more profit. On the downside, royalties from 3rd parties would end, but then again, as long as Wii keeps going, the 3rd party support is going down.
PS3 losses are with the most propability only going downwards, but the question is, that how long Sony can/is willing to wait. They are doing badly and they need to cut costs quickly. That would be a very fast way to improve profitability, without the need of actually firing anyone.

@Kantor: Segas situation was a bit different, since they had their money invested into their warehouses that were full of Dreamcasts. Sony propably has production adjusted accordingly. Outside Sega ending up having no operative funds, the situation isn't financially that different.

POS3 won't be discontinued, but price cut chances are near zero =/