GS: So is the PSP's increasing market share one of the reasons behind last month's flurry of PSP software announcements?

JK: Well, it's certainly related to this announcement. Corporately from a financial standpoint, the PSP has been a high-growth, high-margin product for us. It has, as I mentioned, allowed the PS2 price to drop, and we've had some flexibility.

http://www.gamespot.com/news/6207289.html?tag=latestheadlines;title;1

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So instead of exploiting this year's PSP software line-up with a price drop, or dropping PS3 price, Sony have decided that the best way to use the profit from PSP hardware/software is to drop PS2 price. Mind boggles.

PSP FTW! just got Phantasy Star Portable and its one of many reasons to have a PSP. good job sony.

Infact i'd say Sony did better with the portable then with the home console this gen so far in the long run.

Lets see some balance sony!

Agreed.

Good PS2 sales = PS3 Price drop

Maybe, but there won't be good PS2 sales, that ship has sailed. Hell, Sony didn't even drop PS2 price in UK and Japan.

What will happen is Sony will once again use the profits from PSP to fund PS3 price drop instead of dropping PSP price for once, especially now that it has a lot of great games coming.

I'd say it was a smart move. The PS2 is still profitable at 99, so its not like they're spending PSP profit just in order to cut the price on the PS2 so it will end up "under par"..

They are using profit to attract more profit. The PS3 is in no need to cut price just yet. It could be 399 up until 2010 atleast. Maybe even up until x-mas of 2010 heading into 2011.

This is great news. It looks like the 3000 has cut back on production cost quite a bit, and at $169 PSP is still the best deal in portable gaming. Now that they have moved the PS2 to a brickless unit, the costs have also dropped for production, shipping, and storage space of that system. I think this is a huge factor to the price cut.

Now all Sony needs to do is keep the PS3 were it is, and continue to cram it full of awsome software and market the crap out of it, and they will have 3 very viable systems in the gaming division. The tough times are behind SCEI, this reccesion is nothing compared to the launch of the PS3. In fact the PS3 launch was probably good training for the global economic problem.

PsP = hotness

Can't wait to see what they have brewing for the 4000/PSP 2...

That is kind of surprising for Sony to say.


And this proves that the PSP is still very profitable for Sony.

Well with this news its clear SONY will continue to support PSP for a while, also i think SONY wants a PS3 price cut but is waiting for some additional cost cuts on their end (if their lucky the yen will get a bit weaker so then can afford a price cut).