i dont think the demand is that bad. but a $300 ps3 will definately make people choose a ps3 over a 360. for the same price your getting, a larger hardrive, wifi, blu ray, free online.... ps3 sales would go through the roof, so microsoft would be forced to cut their price but i doubt it would be by more than $50.

not to mention it would make ps3 the best option for blu ray customers, so xbox 360's price cut wouldnt matter as much.

What I could see more of is a Japanese price reduction.

Loss leading won't work for Sony this gen like it worked the last two. Microsoft has far more money at its disposal than Sega and, hell, a lot more than Sony itself. The only way to beat a company that rich is to make a console that people want, even if it isn't the cheapest, straight out of the gate. A console like the Wii.

Software sales are still too little to recoup the losses from hardware... there is loss now (which SW doesn't recoup) and there will be more loss after a drop. Sony will act according to a way that will help them profit from the console, they are in a tight spot now and can't afford losing money in the SCE division.

Very soon, the author of this editorial will be eating his words...

The PS3 will have a price drop in the next three months. I'm pretty sure based on the promotions going on at certain retailers. Amazon had the PS3 recently for $349 and now Best Buy is giving away a $50 gift card if you buy the PS3 (same as the Xbox 360). Often, when you see retailers giving deals on a system outside a launch or holiday season, a price drop soon follows. I feel confident that it will happen soon.

I have spoken.

I thought the assertion that Sony was making money on the PS3 was debunked yet again fairly recently; their gains are all coming from the PSP and PS2 markets, and the PS3 is eating away at most of those gains.

A PS3 price cut in April is nothing more than an April Fool's joke; wishful thinking by people who don't understand just what kind of shape this console is in.

Actually, this isn't true. This predatory and extremely risky move was pioneered by Sony, and only Microsoft has ever copied it. It worked twice for Sony and once for Microsoft; I will admit this. But risk is risk, and sometimes you get burned, and that's exactly what is happenning to Sony right now. They can't risk losing even more on the PS3 than they are right now, or they will bankrupt themselves long before the increased software sales have any chance of saving them.

Loss leaders are a long-term strategy, and the long term is a luxury Sony does not have at the moment. They need something that works much faster than a price cut, and they need something safe, and the problem is that this doesn't exist. This is why we say the PS3 is doomed: the usual strategies can't save a company in Sony's position, and there simply aren't any viable alternatives.