A $50-$100 price cut costs Sony upwards of $500-$1 billion. That's about 10% of Sony's cash reserves, which they desperately need to turn the company around before it goes bankrupt in this massive recession. This is no easy feat considering most of Sony's products are very vulnerable in a recession, there are tons of lower-cost alternatives from other companies

In other words, Sony has bigger worries than whatever heat they may be facing from publishers, and far more important things to do with that money.

Let's not forget that Mike Hickey is the "analyst" who claimed that Sony should remove the Blu-ray drive from future PS3's so they can drop the price, lol.

Yeah, great idea! Sony should make a PS3 that CANNOT PLAY PS3 GAMES so they can sell it for $299!

Anyone down for a $299 DVD player that plays PSone games as a bonus???

WHat a MORON, this guy should be fired immediately as he is an embarasement to whatever company he works for.

Wow - I just love how many financial experts on this thread are blasting a Bloomberg article, one of the most respected financial media sources on the planet. I'd love to see any of you land a job there.

Disregard it and say it's fanboy bias, but when you see devs focus on Wii and 360 projects, and leave the PS3 in the wind, don't be shocked one bit.

It's a known fact Sony needs to cut the price. Deal with it. If you have soft skin, plug your ears and ignore the warnings.

LOL. Just for fun, apply for a stringer job with Bloomberg and see how far you get. I dare you. It's funny you call him weak because he doesn't appeal to your opinions. It's news, folks.

From a certain perspective, they need to cut the price. Looking at the big picture, I'd say they need to not cut the price, in order to preserve cash and investors' confidence (which is already very shaky, as one can see by looking at Sony's stock value).

At this point profitability is far more important than gaining a few points of market share.

Profitability is key...heading into year 3, but every developer has finite resources, so it's a simple game of ROI...the platform that delivers the most will get a better % of development projects. 

Yes but that's for gamers to worry about, not Sony since they have bigger problems. In any case I think the HD consoles are pretty much together, most 360/PS3 games will continue to be on both consoles.

Well...Media Molecule has joined the chorus, and so the question is what happens if Sony doesn't drop the price soon? M$ has already model this in their estimates, so it almost seems like Sony's hands are a bit handcuffed. It's one thing for Greenberg to be say...PS3 price will drop soon, but when MM is doing so...hmmmm...

http://g4tv.com/thefeed/blog/post/694011/Media-Molecule-Head-Joins-The-Chorus-For-a-PS3-Price-Cut.html

I just want them to drop the price in Japan. Just DO IT Sony!

lol...ps3is doing well in Japan...so I doubt they are going to drop the price there, and Sony can't afford any price cuts, but if they absolutely must...I'd say a $50 cut and a cheaper model...maybe no wireless and a smaller HDD...with the "ease" of getting a new HDD...just BYOD.