This is bandied about a lot.  A $50 price cut is possible and would improve the console's standing.  Although I don't think that alone is enough to ensure a long term resurgence versus the Xbox 360, especially if Microsoft offers a counter-cut.  But given Sony's financial situation and the fact that based on the most recent isupply figures (which dont include manufacturing labour or distribution costs) the PS3 is still sold at a loss, does anyone seriously believe Sony will offer a $100 price cut this year sometime?

Don't get me wrong, I'm sure if such a cut happened and Microsoft didn't respond there would be a substantial shift in the week-to-week sales figures.  But I simply don't see how forum members perceive it to be possible, much less the certainty many consider it to be.

As someone who plans to purchase a PS3 at the next price cut, I want a $100 price cut as much as the next person.  Much as the PS3 will never catch up with the Xbox 360 (at least never at a time where it will be relevant or effect game allocation), it still has some decent games in it's library and some decent-looking games in it's line-up that I want.  But a price cut of that magnitude would SERIOUSLY undermine Sony's ability to turn profit as a company.

I have absolutely no idea what happened to the title of this thread.

@starcraft both companies can't cut the price 100$ as today with the currect chipset.

but technology progresses and things like 45nm can same 50-100$ dollars easily.

As of a few months ago all the parts in the PS3 cost just under $450.  Thats not including manufacturing and distribution.  Throw in the fact that retailers pay sony less than consumers pay for a PS3, and Sony was still losing $70-$100 per PS3.

Even if they saved the equivelant of $100 because of a 45nm chipset, they are suddenly only making $30 profit a PS3 at best.  You really think that in their current financial state they would drop back to losing $70 immediately after making those gains?

To be competitive,yes.

This. Sony can drop the price and go back to selling the console at a loss if it means they will significantly outsell the competition and expand their market. Also, just because Sony is selling the console at a loss doesn't mean that SCE can't be profitible. Q4 2007 was a great example.

I don't think Sony can afford it.

 but they are already comptetitive for how much they cost. They do not need second place. They have sold enought consoles that developers will not look them over. The PS3 and 360 will get nearly all of each others 3rd party games because developers cannot afford to lose potentially millions of sales. IMO sony should keep the price high so they can begin R&D on the PS4 because we can bet M$ is workin on their next system.

They probably sale a game with each console, so that equals out any retail loss

They sure could in Q4 2007, and PS3 was a LOT more expensive for Sony to manufacture then than it is now. What it comes down to is if Sony has the games to offset the hardware losses.

With Gran Turismo 5, God of War III, M.A.G., Ratchet & Clank Future: A Crack in Time, and Uncharted 2: Among Thieves all coming within the next year, Sony doesn't have to worry about a lack of software.