I am convinced as well

Exactly. MS was able to hold off for nearly two years before dropping the 360 price. Given the loss they initially took on the unit, it was necessary to have that time to get costs under control to ever hope for profitability this generation.

If Sony drops the price to $400, they'll lose heaps of money for the entire generation. It forces their hand to drop the price to $300 next year, $250 the following, etc. etc. They will never be able to get their manufacturing costs under their price point until the PS3 is nearing end of life, ensuring a big loss for the Playstation brand over the next five years.

With that said, will they do it? I don't think so but they could be desperate enough to try which plays into MS's hands quite nicely. All MS has to do is agree to take one more hit in short-term profitability to guarantee Sony a third place finish this generation. They definitely have deep enough pockets to wage this kind of war and it will be interesting to see if they go for it.

A $200/279/349 price structure on the 360, combined with Halo 3, BioShock, and Mass Effect, might even rival Wii sales this holiday season.

In any case, it will be interesting to see how it plays out over the next two months.

@soriku

Sony is desperate for what? Giving gamers what they want for a reasonble price. And thats what being market leader is about.

October 12th

is the BIG BANG announcement/conference from sony.

They are going to announce 3 huge suprises. They said it themselves coming from the myspace blog.

@ Engelos: No matter who you are please don´t call people idiots.

Anyway this situation has pros and cons for Sony, still their biggest problem is not price it´s games, yes the price is to high but great games could counter that, a lower price however will not counter lack of games, Sony can eather try to get better sales this year and make more losses or they can whatch the bad sale continue till spring and then start the new year with a pricecut and game surge.... hard to say what will pay off in the long run.

Um none of you even have a clue how much they are losing or would be losing with the price cut. None of you have any idea what sony corps view is on the matter.

So where do all these opinions as facts come from ?

Does any one know how much Sony is losing now per console, how much is the PSP of setting the PS3 loses, would MS match the price cut if they still would be $120 cheeper with out it.

@leo-j

3 SURPRISES:

1. Price Drop

2. GTA IV OCt

3. ????????????

Actually I think El Duderino hit on something interesting here.

A while back didn't Kaz Hirai say that he wouldn't be lowering the PS3 price point until he felt he had a group of good games to support it so he could maximize the sales boosts garnered.

Well then again they denied the price shuffle in July up to the last minute so that may not be reliable. I don't know, you decide what to make of it, just pointing it out.

Its all the same El Dude, the PS3 doesn't have great games because it was lagging in releasing dev kits, it has a massive price, and people are waiting to buy it. Yes, most people I know want one, even without a great games line up. Also I'm not calling anyone stupid but if anyone thinks that Microsoft is in any kind of place to match a $399 PS3 (Yes the HD is smaller than the Elite, but it has BR, wireless, etc) they are crazy.

 Soriku...you called him (or her) Hus.  That is a worse offense than what he gave you.  If you are going to make a comment like that, have the stones to provide proof or have the humor to laugh off the denial. 

Ya know what I will put a crow eating bet on the table...

If anyone truly thinks that 2 of the 3 big announcements will be "GTA IV in October" and "PS3 Price Cut at or below $445", I will take the end of the bet that says it won't happen with the loser to eat crow.