If the PS3 was in first place then the PS3 would be obviously selling like crazy, but if every PS3 was sold at a loss then wouldn't that mean that Sony would have lost a lot more then what it has lost already? (They'd probably make more money with there games but would be that much better?) So if this is true then Sony's probably happy that it's selling how it is, right?

Am I wrong?

If you don't win the battle for marketshare, then you don't generate a buzz that gets enough platforms established to be a viable platform. You want to be first, so that you can draw attention to yourself, and be seen as the "must have" console. Wii is there now, so that people who aren't really paying attention, will jump on the Wii platform, because they believe it is one to get, because of sales.

I was wondering this too. My common logic then yes, it is better they are selling worse. But at the same time, they would want more sold so they can sell more first/third party software.

No, if ps3 was selling right off the bat they wouldnt have dropped the price buy 100 bucks so soon so they would have been losing less from the time they droped the price to the time they would have dropped the price. They also would be selling more software.

no it would be good, but it would even be better if the 360 was first...

no it would be good, but it would even be better if the 360 was first...

No... I think the PS3 is now bringing more money that it's losing. Mainly from the extra services.

If they were first they would have the software/BR sales and PSN money to cover most of their losses...

^ This. In Europe they dropped the price from 600 € to 400 € before the PS3 even had its first holiday sales season.

Obviously Sony didn't plan this situation, they'd have to be very stupid to purposefully need 3rd place.

if the ps3 was selling like crazy it might still be at 600 or at least 550. that would be a profit for sony on every console even with marketing and selling under list to retailers.

price cuts are to generate sales. hence why the wii has had none.