As others have said. If PS3 was in first it would likely be more expensive at retail because the demand is there anyway. Also with Sony selling quite a bit more they would be able to reduce costs further due to the fact they'd be producing much higher quantities.

well software sales makes more money the hardware sales, but the more hardware you sell the more software you will sale.

So no Sony is not happy with their current situation.

you guys are either kidding or lack logic. The more ps3s sell the better, WHY? because ps3s laying in warehouses dont get them anything.

Proof:

If a ps3 doesn't sell: -$600 because it wasnt bought.

If a ps3 sells: -$600 + $400= -$200.

So .'. the more they sell the better and the fact that more ps3s = more bluray and software sales.

please tell me this is a joke.  i can understand saying that the more they sell the better prices they will get for buying in bulk, the more they sell the less they have to pay for storage, but not this.

all ps3's that have been produced as of now will sell.  thats just common sense.  youre assuming some wont be sold which is just complete bs.

At this point, I could really care less about which place it would be in.

this saying irks me.  saying "i could care less" means u do care.

no, whatever they are selling them for now must be good enough for them, they see it as an investment, more sales bigger returns, they want more sales.

Diminishing returns on console owners. Price discrimination. Generally the later in the lifespan someone buys the console the less games they are going to buy. If someone is waiting for a $300 price tag they probably wont buy as many games as someone that will shell out $400-$600 for the machine. For now Sony wants to get a bigger return for the lose incurred by selling the hardware at a lose As well as minimize the lose on selling the hardware.

As strapped for cash as they are now, they need the money now. They can't take the loses and wait for a year or two to recoup those loses overtime. So in a perfect world it would be better to sell more if they had the money to deal with the short term loses. But they don't so it is better that they aren't selling as much. And that is also why they will not lower the price.

So to sum it up, yes it is better for them that they aren't selling as much right now. But no, it is not the ideal strategy and probably wont be their strategy anymore in a year or two, assuming they can start generating a better cash flow.

I guess you could call it a Catch 22. If PS3 is the best selling console it would have the best 3rd party support and would make a lot of money on game/accessory sales. But they would lose lots making each console.

Things made in bulk are cheaper so not necessarily so.