It would be about five 3rd party titles and 2 first party titles. Actually, they'd net a small profit with two first party games and be breaking even on five 3rd party games. It could be more than five third party games if Sony cut the third party a break on the licensing fee like they were rumored to do with MGS4.

You're looking at it wrong.

It's not a matter of how much software sales it takes to recover $50. Only the software sales caused directly by the price cut should count in a cost/benefit analysis. Most of the buyers would buy a PS3, price cut or not (unless you believe sales would increase more than 100%). This makes it much harder for a price cut to be worthwhile, profit-wise.

So for example if the price cut boosts PS3 sales to 13 million as opposed to 10 million for the year, the 3 million additional owners would have to give Sony $650 million in software revenue for the price cut to break even ($50 times 13 million). This comes out to $216 per owner, or around 10 pieces of software.

For various financial reasons, the price cut will not happen until next fiscal year. (after April 1st)

Look at the Sony's price cuts for the PS2 in the US. Every single one was April/May.

Playstation 2:
* US$299.99 (October 26, 2000, Launch Price)
* US$199.99 (May 14, 2002)
* US$179.99 (May 13, 2003)
* US$149.99 (May 11, 2004)
* US$129.99 (April 20, 2006)

Looks like a new bundle is coming, not a price drop.

PS3 + Motorstorm1 + FRoM1 = $399

Is this for real? Motorstorm and Resistance 1? lol...

lol

They should of bundled LBP and KZ instead....

If there was any doubt that Sony wants to save money more than anything, it should be pretty much gone now. They're dumping stock of old games instead of bundling something like Killzone 2.

I may have to withdraw my prediction that KZ2 will outsell MGS4 (I made it because I thought Sony would bundle it aggressively).

At least the games are free :P

so not the best choice in games MG4, KZ2, LBP..you games still popular