More 40 gig BS, cut the crap people it aint happening.

ALSO alot of ps2 games are also on the wii so people will still buy ps2 if the wii shortages continue.

399 PS3 will happen when 65 nano cell and rsx chips are used, unless they really brought down the production cost and can take the loss.

And if there a 399 PS3 it will NOT have be 40gb!!!

I think since Microsoft brought it up that they would probably have a plan to counter such a price reduction. Based on their last price reduction it was effectively the same price reduction per percentage that Sony unveiled at E3 which was a 16% price reduction. Were this rumor born out that would be a 20% price reduction on the base model. So if Microsoft follows the pattern their machines would drop by an equal margin. Which would make the Pro a $280 machine, and the core would drop probably down to to $230.

Microsoft made a statement with their price reduction. That statement was they would match any Sony price cuts percentage wise. So if you believe this rumor you must also believe that Microsoft is going to match suit. Given the respective financial positions Microsoft can afford to eat the loss far more easily that can Sony.

I would rather think the Xbox 360 would do far better then the PS3 with that lower price range then a PS3 would do at a four hundred dollar price range. Microsoft would firmly move into Nintendo's market at that point. Which is obviously a far larger market. With more potential consumers.

True Sony might double sales at a twenty percent reduction in price, but Microsoft might quadruple their sales at the same percent of reduction. They definitely have the lineup to sell consumers on. This is what some posters are ignoring we are talking about a price war here. Sony selling a million units is good for Sony. Microsoft selling four million units in the same time would be very bad for Sony. A perfect catch 22.

The price considerations do not take place in a vacuum. This is a cause and effect relationship between the two. Hell between all three if Sony gets Microsoft to undercut the Wii on price. The faster Microsoft drops the price the worse it will be for Sony. While I think it seems like great news to Sony boosters. Chances are it would be better news for Microsoft and Nintendo boosters.

I also find it hard to imagine Sony dropping the price of the PS2. There comes a time when you cannot reduce the price any more on any technology. Further more this is where Sony is getting gravy. Would there be any viable reason to reduce the price. The machine is not in any race, and is effectively alone in its market. So there is no pressure. Especially if you believe the price drop this is where Sony would make back some of the losses.

Actually, the losses of the PS3 launch set new records and were anything but normal. It's far, far greater than the early PS2 losses. MS has lost more over the long term, but it's never had such a huge loss at once.

It should be noted that the original estimated losses for the 2007 fiscal year were going to be $700 million, but it completely blew up to nearly $2 billion. That's what cost Kutaragi his job.

Now the 2008 estimated losses are $500 million. Q1 2008 already lost $243 million. That is not a good sign. Combine that with a strong yen and consumer weakness, things could be quite bleak for Sony in the near term.

For one you should say SCE not Sony.

Two they got alot of PS3 software that will bring in profits late in the year the PS2 is still selling great and the PSP slim should not only cut costs but increase sales.

You really cant see that end of the year is the time for big revenue Big profits ? i know your hardcore anti sony but come on, Santa time is coming.

A 40 Gig PS3 (without Wifi, Flash Card Readers) and software Backward Compatibility @ 399$ is very possible. Sony might "steal some thunder" from Nintendo & Microsoft if they are able to offer decent software.

The PS2 was stronger last year, it had a huge holiday season and still the losses for the whole gaming division were gigantic.  It isn't getting any better this year.