Yeah, NJ5 actually tricked me into believing in a $50 price drop for a while when he kept pumping out those Sony doom threads. But the whole time, apart from a short period, I've been a firm believer in a $299 PS3 in Aug/Sep (that prediction is well documented in my post history). The Slim took me by surprise though.

On PS3 phat I believe Sony was losing at least $50 at the $399 price. So even if they're saving $100 by making the Slim, it still would cost at least $350 to produce.

But all is good, they can make those $50-100 back on periferals and software license revenue.

I see a lot of companies and analysts jumped on the price cut bandwagon... I don't understand why virtually no one outside of these forums has actually calculated the impact on Sony's finances. Do people really understand the realities of the hole Sony is in?

Maybe if the dollar/euro strengthen a bit we could see a price cut in the holiday season... but even that is a bit of a stretch IMO.

But look what you said in March:

http://vgchartz.com/forum/post.php?id=1899531

Haha well caught, it seems I flip-flopped... because I was going by Sony's statement to investors that they were looking for profitability in the games segment. Then in April Sony made their 13 million PS3 forecast and I was back on the price cut bandwagon.

BTW I still think Sony will be in trouble again if the recession is worse than most people think now... but I can see that the price cut was needed for the PS3 to be viable.