I Think the last comment in Pachters statement speaks volumes.

"They will not make this decision lightly"

No one knows how much Sony lose for every Ps3 thats sold. So a lot of the financials being thrown around are guesstimates at best.

I think Sony will go the added value root and only consider a price cut if Microsoft force their hand.

around $40 per console now.

re: a slim it could be considerably less to produce, if it did away with wifi and had external power brick and the likes of that.

patcher is talking about cutting price of ps3 as it is now

Does $50 X 7,000,000 = $350,000,000 for everyone or just me? I will file Pachter's latest analysis in my obvious folder.

Extra game sales assuming 6 to 7 million new owners. They buy 3 or 4 new games at around $60 each. Well software profits make up for the losses on hardware and extra profits are made. Losses on hardware will be offset but huge profits from extra game sales and profits off of accessories being bought by new PS3 owners and of course extra revenue from DLC and games purchased from the PSN online store.

More PS3 console sales will mean more developers will make games exclusive to PS3 and higher games sales per multi-platform titles and higher exclusive game sales. Sooner or later developers will make games exclusively for PS3 due to its advantage in regards to 50Gb storage space to work with fpr games. DVDs only hold 6.8GB per game disc and are restricted.

With price cuts PS3 will be back on track to destroying the XBox 360 in console sales and overtaking 360 in total sales. PS3 will be back on track to sell over 100 million consoles ltd. Playstation consoles selling over 100 million systems is a given. PS1 and PS2 both sold over 100 million systems each. Sony the most trusted electronics giant company in the world has loyal customers who will buy its products. PS3 is no exception and Blu-Ray is the true successor to DVD.

Here is a real analysis of what a $100 price cut would cost:

http://vgchartz.com/forum/post.php?id=2164540

With some assumptions of course, but still better than not taking software into account.

Good analysis, the only problem is that Sony does not sell the console at $400, though I don't know how much they actually sell it for, so that decreases the money earnt from hardware sales