Actually, MS broke even on the 360 about 9 months ago, and have been making a profit on them since a little after that. And developers and retailers don't care so much about past and future performance, but present performance. The PS1, NES, and SNES made a shit-load of money for retailers in the past, but are those games still on retail shelves? The fact is the DS is selling much much better in both hardware and software. That's the only fact that retailers care about. They can't make money on past and future sales, only present ones.

i think, after release psp lite they definately will drop price, until that happens, there is no point of doing that,

I'll let you all in on a not so secret, secret: Retailers don't really make much money on new videogames, systems and accessories Videogames (in general) have very low margins for retailers and the reasons retailers cary them is because (often) have explosive sales which can be profitable and they bring a lot of people into the store. Currently I'm willing to bet that employees hate the Wii and every company loves the Wii ... it takes no shelf space, it gets a lot of people walking deep into the store to look at a shelf who will (likely) buy something else because they're there. Poor sales for a system means that it is taking up shelf space, doesn't move much volume so the low margin hurts, and it doesn't bring that many people into a store. Currently, retailers have space devoted to the PS2, PSP, PS3, XBox, XBox 360, Gameboy Advance, Gamecube, Nintendo DS and Wii and (likely) want to recaputre some of this space to use for something that will move more units or bring more people into the store; the systems which are most likely to lose space at the current time are the PSP, XBox, Gamecube and Gameboy Advance ... they will still probably have a section, but they will probably be reduced to 1/2 a booth rather than the full booth they have.

Sales of this system in the US are close so I don't see why retailers would come to this conclusion. Most of DS lead comes from the 10 million lead they have in Japan over the PSP. I do agree though. At 199 it's too expensive, there is no reason for it to be that much now. Especially with Ipod coming out with video players that are going to have a comparable cost to the PSP. Considering you could have got the DS on sale over the holidays at 99 bucks I think it's time the PSP price drops. They would sell more.

MS technically makes a profit on hardware (at least the 400 SKU), but XBox as a whole is still in the red. There was speculation that all the losses of the division were from Zune at this point, but Peter Moore is still talking about acheiving profitability, and he has nothing to do with Zune. He's said something along the lines of "making a small profit on each console sold doesn't mean anything if we spend 100 dollars in advertising to get that sale." XBox should become profitable as a whole within 6 months, but there's a similar timeframe on a price cut. Hopefully, for their own sake, cost reduction goes off perfectly, because it'd be a shame to cut the price and create another 6 months of red ink. PSP appears to be doing okay, but look at the year over year sales. PSP launched in March of 05... In the Mar-Dec period of 05 and 06, the 06 sales were only higher in two months... In the key month of December, sales were about 150K lower in 06... For the DS, sales got better every month of 06 over the comparable month of 05, usually by a ton... To put the sales acceleration another way... DS launched 4 months before PSP, including a better launch and an Xmas season... Yet DS crossed the 4 million sold mark in NA in Dec 05 and PSP hit the mark the next month, nearly catching up... Today, PSP is yet to reach 8 million in sales, while DS just reached 11 million, and could blow by 12 million as soon as Pokemon hits. Looking WW, while PSP has sold 20 million in just over 2 years, its looking unlikely it will reach 30 million in another year, while DS could get to 60 million in the same time frame. So you can see why retailers might be irked. PSP appears to be losing steam, its being outperformed by several systems, and being smashed by its main competitor. Yet it costs as much to stock as it did when it was a hot item.