i fully agree with the OP, i'd rather have a good PS experience and have a PS4 than have more people buy it

Why should they do that? PS3 sales certainly aren't struggling to the point that the PS3 needs a price drop immediately. PS3 is still consistently tracking over what 360 did last year. If Sony really feels the need to accept the huge losses that would come with dropping the price $100, why wouldn't they do it when:

1. The PS3 will be much, much closer to profitibility
2. They'll have huge 1st party releases to offset the losses
3. They'd get the biggest increase in marketshare in exchange for the losses
4. Microsoft won't be willing and able to match the cut

It's going to be a long 6 months, but if Sony is able to survive through it like Microsoft did last year, they could be in a position to completely turn the tide of the PS3 against the 360.

@Seihyouken

Thats why I said they should only lower by $50 now and wait until the end of the year to do another $50 that should give Sony more time to bring their production cost down. Sony Knows they need to lower the PS3's price they will only do it when they are ready, no matter how much people want it.

The reason the PS3 doesn't need its training wheels as much is that it didn't get a price cut yet, of course. If they went back to $100+ ($150-200+ ?) losses on PS3 hardware, without the PS2 to help it wouldn't look as good.

As for the PSP, I was referring to the following picture from Sony. Note the falling PSP hardware and software sales during the holiday quarter.

I agree with the article. I already have the best ps3 model and couldn't care less if my neighbors bought one. The console is still selling steadily at it's high price so sony is better off focusing on the experience while maximizing profitability. The last thing I'd want is for the company to collapse.

ia gree mostly with this. But it seems SONY have really got themselves into a tough spot. Being the most costly makes people practically beg for a pricedrop. yet the console is allready selling at a loss. And from what we've seen in price drops for say. the xbox360 it hasn't really effected sales so much that it would offset all the money they would lose. yet if they. people will keep looking towards the two cheaper alternativs and potentially ruin the ps3 late year sale. there is no easy way out for sony. lets hope they come up with a good solution to this problem

@Peterisyum - I'm hoping that Sony comes up with a good solution to the problem as well. The most disastrous thing that could happen to the gaming industry is if Sony's Gaming Division Collapses entirely and we lose the Playstation brand. Competition is great for the industry, so long as it doesn't take out one of the competitors.

There are some great points in this debate here. Yes, a price drop would get a lot of people who are teetering on the edge of whether or not to buy a PS3 to finalize their decision and buy a PS3. It would bring in more sales, but when your selling your console at a loss. Doesn't more sales mean more losses?

This week in Others, PS3 only sold 20, 000 less than Xbox 360. With Double the cost for the entry-level SKU. If PS3 sold half of what Xbox 360 sold, 60, 000 less than the Xbox 360. Then yes, I would agree that a price-drop is absolutely necessary in order to maintain their position in the console wars. However, for the price point. PS3 is selling surprisingly well. So a price-drop would be a short-term fix for a problem that isn't big, when there's bigger problems facing Sony right now.

Sony's first concern should be regaining profitability, their second concern should be their existing consumer base. Their Final Concern should be increasing their Marketshare.

@nightstriker

yeah i absolutely agree. sony need to stand strong on their pricepoint or whatever they want to do until they can get profitable, then we want to see price drops and such, then they can focus on getting some of that playstation marketshare back, but thats going to take quite a bit of time

If Sony really is going to drop the price on the PS3 I would rather them do $50 now and $50 in September, rather than $100 all in one shot.

i don't think the PS3 can drop $100 in price can it....?
it wouldn't go less than £249 in the uk and it isn't there yet...by a long shot...

i don't see the wii market share a s a direct problem to the PS3...but thats just my opinion.....

but obviously a £125 arcade 360 is a direct problem for the PS3......

i think the £125 arcade 360 is like the new PS2.....

but what can sony do about that.....i wouldn't know and would be interested to know what you think...?

sony has to either stick with this price and give the PS3 a 5year shelf life and support it.....properly.......that would be fine with me

they would most likely hit 35-50million units with a 5year shelf life.....is that enough for sony and PS3 gamers......?