All I can say, if you're that confident in Sony, then by all means invest in it and prove us all wrong.

I know where I have my bets placed, and it's already made me enough to buy a decent car. Pretty much the easiest money I've ever made.

I see a lot of fanboys defending Sony. I don't see a lot of fanboys investing in Sony. If you check out my NTDOY thread, there are many people investing in Nintendo. Sony not so much.

You Hear that SONYFANBOYS!!!! get to investing

I've got a small amount in Sony and want to add some more shares within 6 months but I'm hardly going to put more than 7% of my portfolio in a single company...

 Yahh iam sinking 30k into a new ride, so once if i win the loto iam buying SCE!!

I could imagine the PS2 price drop, and even perhaps the 80gb PS3 but I expect that the price of starting up and running a second production line would nullify cost savings by removing any minor components in the regular PS3 to make the 40gb model.

Smart man there.  Never invest with your "heart" just because you love and follow a certain company and a product they have.  You never know when it could come crashing down, example: Enron.   Be very very careful investing too much into a single company.  And 7% would be the MAX you'd want to invest in for a single company. 

I'd rather invest into mutual funds that have a great track record for great returns and smart people on the board.   And if someone leaves that was an important part of that, then you move your investment around a bit to another one that gives you more bang for your buck.

 Sure you can luck out and find the next "Google" stock, or whatever and make a quick bundle, but if you hold too long it could come back and bite you in the end and you will end up losing alot.   Many of those investing in just Nintendo and investing with their hearts because they want to believe that it will continue to rise and make them a bunch of money.  Eventually a company will hit a down turn and you'll take a nasty hit.

 Back to the topic though, if Sony does bring out at $399 version, it will absolutely KILL this Xmas and Sony will make record sales.   Sony is not a cash poor company and other divisions are going through record sales and making great profits to help carry the gaming division during the early part of the consoles life.   Don't forget that the gaming division helped carry the rest of Sony when other divisions struggled.   Right now it's just payback time.   If Sony can justify dropping the price to that, they will.   And they won't lose their shirts and take a larger loss then they have been since launch. (Costs have dropped more then $200 from launch to end of Q1.)

Hus, good points, and not very fanboyish so i have to ask,


Hus are you okay, did something happen? do we need to call a hospital?


(all in good fun)

As much as I would to see this happen, I don't believe it

The PS1 was initially sold at a $200 loss and got a $100 price cut within the first year of avilability, so to say that this is the greatest loss Sony has faced to buy their dominance it 100% asinine bullshit.  Considering inflation, it's not only not the biggest loss they've taken per console but it's also a loss much more likely to see big returns because they are buying their way into two wars that will be quite profitable should they win.  Maybe as an entire venture without world economies taken into account this is the biggest raw number they've thrown into the furnace, but the doom and gloom you cast on the situation is a lie.

Really, your SN points out clearly how your posts are going to smell.  Telling people to invest in Sony at this point as if that makes them admit there's a problem with this fraction of Sony's business is patentedly absurd.  Sony is a much bigger company than just "the guys that make Playstation" and are as a company very profitable right now considering that they are fighting two wars that are both uphill battles.  Investing now isn't even a big risk considering how quickly the HD market is booming, thus making Sony's TVs profitable enough to cover up blu-rays lack there of, and the chance for great rewards exists.  The problem is that most people on these forums can't invest in any corporations because they are too young, are not financially stable, and/or live in a country where there are just too many hoops to go through to do it.

That aside, I see no reason to believe that Sony has another cut in the works for this year.  While I'm sure they will do something in response to the 60GB units and limited edition 80GB units running out, I think it's foolish to believe that it will in any way involve the number $399.  And I say this as one of the people who constantly insisted that Sony not only could but would cut the price of the PS3 this year.  The clearance price on the 60GB was pretty much it.  Until MGS4 comes along, it will be it.

As has been pointed out, Sony can't afford a price war with MS, but it's 100% obvious that MS is ready to cut their prices in the event Sony does.  That was the message sent with their last price cut, and it was clear as day.  Pushing MS into the Wii price range now would be self destructive, as it would open the 360 to a much wider market range.  Sony can't stop them from going there, but pushing them into it for Christmas would be wrong.

If these rumors are true, Sony is entering a very dangerous game against a company with infinitely deeper pockets and more wiggle room to reduce hardware costs.

This could work out in Sony's favor if MS stands pat, but if MS decides to play hardball and eat $1b to knock Sony out of the contest, we could see a $200/$279/$350 360 price structure, which would absolutely devastate Sony this holiday season when coupled with Halo 3, Mass Effect, Lost Odyssey, and others.

Sony just doesn't have the capital to get into this kind of longterm war with Microsoft, especially if they set themselves up to lose money for 5-6 years on the PS3 (which would be the case if they dropped to $400 in 07, $300-350 in 08, etc). Ramping up the price war this quickly basically eliminates any chance of SCE turning a profit this entire generation.