online is great. and free.
im very happy wiht ps3.

Alot of good points. But, like someone said, Sony's still losing money and making a system that would be $100 or $150 cheaper would only make losses worse, even assuming sales see a huge boost. When a system costs more to manufacture than you're selling it for (which, if they dropped the price that much, it would again) than the more you sell, the more money you lose. I don't think Sony can afford to lose more money than they are right now, so I doubt we'll see a price drop until manufacturing costs drop more. Then again, Sony could also make another model with the 80 GB HDD, no BC, no game bundles and probably afford to sell that for $300 now...

Also, about Resistance 2... It's my favorite online in any game, and it has the most network and other problems. Please, insomniac, fix this. I'd pay for better servers...

There are only three factors that determine whether a price cut makes sense for a console:

1. How much profit is being generated by the console before the price reduction
2. How large the price reduction is
3. How large of a boost is sales is expected from the price reduction

Now, if a console is breaking even before the price reduction you require a 25% boost in sales to justify a $50 price reduction, or a 50% boost in sales to justify a $100 price reduction, if you're willing to accept a $200 loss for each console sale that you gained.

So everyone has jumped on the 'ps3 needs a price cut' bandwagon then. Great

nah.

Sony is currently selling PS3 at a loss at $400. They are expected to post a loss in their entertainment division this fiscal quarter.

MS just released their financial statements claiming a $150 million profit in their entertainment devices division.

AKA, they are selling a $200 360 at a profit.


So when Sony eventually drops the price, MS can and will easily follow suit, especially with the cost-cutting Valhalla chipset due this fall.

 ^ We have a winner,  this in the end is all that matters to consumers

 Is thar right? Are you sure the "Entertainment Devices Division (EDD)" is only about the 360? Guess what? it's not. One more thing, the are posting profits for YEAR 2008, but that doesn't magically erease the ~4.5 billion in losses they post when they cancelled the first Xbox and the ~1.2 billion they spent to save the 360 from its doom-bound manufacturing woes.

only your point 1 makes sence, sony should cut price when manufacturing of an entry level machine is lowered. they should keep the £299 model and add extra value to it like backwards compat and extra pad, it will keep selling.

its a just an entry price they need thats all

ya....cause im sure, windows mobile and the decreased revenue of zune sales is the bulk of that profit LOL. The 360 is the bulk of their division.

and last i checked, the playstation brand is PS2, PS3 and PSP. Id imagine the PS losses would be even greater if PS2 and PSP revenues didnt "soften the blow".

ANd one more thing, they have made enough profit with the 360 to make up for the billion RROD thing. As for the origional XBox losses, the PS3 has lost at least 4 billion alone since 2006, even more if PSP and PS2 profits didnt again "soften the blow".

Point 1 = idiotic.
Point 2 = doesn't really matter I would think.
Point 3 = minor thing, not really a big deal.
Point 4 = this one is a very good point.