Wii is aight Ps3 just plain ol sucks 360 rules this shit and Halo 3 will significantly help with that

The word was unhealthy, not unsuccessful. And I'd say that annual declines after launch is unhealthy. Oh sure it is possible for things to change. But it's not that likely for a system to turn its sales around that far into the game. P.S. I'm not saying that out of researched proof, but out of pure assumption, so if you can think of a case, you will have effectively put me in my place. P.P.S. And if your example is the DS's sales... It might not be a good idea to use the PSP's main competition as an example.

i'm pretty sure you're absolutely right that there's no precedent for a sales turnaround this late in the game. But there's also no precedent for systems that can be updated and improved the way the PSP can. Perhaps this is why we've never seen the kind of sales turnaround that I believe is very possible for the PSP. Plus they don't have to increase their sales by all that much to improve over the 2005 numbers. Will it happen? Who knows. But I think we can both agree that this is the PSP's make or break year. If Sony doesn't make some big moves, I think consumers and retailers will completely lose faith in the system.

I just though about price cuts. If MS or Nintendo were to cut prices, there would be two outcomes: 1) MS and Nintendo would quash PS3 by building up an unsurmountable lead. 2) Sony cuts prices too and everyone loses money But right now, since supply is pretty low, a price cut would just make the shortage worse, so it wouldn't affect sales at all.

Sony will have a very hard time cutting the price of the PS3 regardless of what Microsoft and Nintendo do. They've been losing over $200 on each PS3 thus far and even with a higher price, 1 SKU, and no EE they still lose over $100 on the newer Euro version. Microsoft with its one year head start has already cut its per unit loss from $100 to 0. Nintendo already makes a profit and once the Wii is in steady supply they could easily manage to drop its price to $150 (especially if they remove Wii Sports). Even if they did that at launch they would have loss less per unit than MS or Sony but given the Wii's sales no reason to throw money away now. The fact that Microsoft hasn't cut the Xbox 360 price yet shows two things, 1) they know Sony is hamstrung by the still stratospheric per unit cost of the PS3 and won't cut prices soon, and 2) even deep pocketed Microsoft is running out of shareholder patience over its large game division losses. Nintendo has no need for a price cut since the Wii is still selling out without difficulty and at current prices the Wii is the only mass market priced system. At the moment Sony and Microsoft are each betting that the other's shareholder patience runs out first while Nintendo is laughing all the way to the bank selling to the mass market. Should Microsoft cut its main system price to $300 and Nintendo drop to $175-200 Sony would basically be finished. The losses they would incur matching such a drop is something Sony's finances couldn't take and not matching it would essentially leave them out of the non-Sony uber fanboy market limiting their total sales and ability to gain scales of economy. However, Microsoft knows that it probably won't survive such an attritional strategy either so it's not likely. Since Nintendo already has a mass market price it has no reason to instigate such a fight either since it doesn't stand to benefit any from it.

I think Sony's loss are a bit lower than everybody expect because of accessories - sixaxis, HDMI cable, PS2 memory cards reader, remote controller - this stuff is pretty essential and high-priced. It helps for sure. Anyway I think they will not drop a price before X-mas. There is enough support from Sony-fanboys to keep sale at reasonable level to the end of 2007 (350k-500k a month WW)

To cut you down in one fowl swoop. Sony will be in a position to cut the ps3's price by $100 this fall. I'l keep saying it. The wii is no threat to xbox or ps3. It's aiming at a different audience and the jurys out on how long that audiences attention will be kept. As always unfounded nonsense.The console war wont even start until this fall. It'l be hilarious watching this site. People massively underestimate Sony.

speaking of unfounded nonsense, your first paragraph.........

Look, I'd rather be the company that has double the market share and is breaking even over the one that's losing money any day of the week. If sales were the other way around and Nintendo was on the ropes, I doubt that you would say that "the console war won't even start until next fall". You would probably conclude that Nintendo is in trouble. So really, the "console war" was supposed to start LAST MARCH. It got delayed until this holiday season. Sony got PIZZOWNED by both Microsoft and Nintendo this year. Sony's only saving grace was its ageless PS2 and Guitar Hero. Is anyone counting Sony out? No, not yet. Next holiday season might be a different ball game, but for this past holiday season, the Sony fanboys should gracefully accept defeat. I agree with Albionus on this one. If MS and Nintendo had enough supply and cut prices (meaning no possibility of shortages), then Sony would slip even further behind and would be in deep doodoo.

Ouch, why don't I feel cut down in one "fowl swoop". Unfortunately blind fanboy trust does not an argument make. If you read the first line of my comment you would see I didn't say Sony would not or could not cut the PS3's price by $100 this year just that it would be very painful financially. I agree that issue will come up and there will be pressure to cut but Sony is a business not a charity, they simply cannot go on losing money at the rate they are and still stay viable. Especially not after last years financial troubles (if I recall their already massive load of debt got downgraded). I find it funny though that the Wii will sell over 7 million in its first 4 months, will likely race to #1 this year, is still non-existent in store shelves (I got mine by blind luck, 6th store I tried one day was just unloading them as I walked in), has made major inroads into all gaming demographics save for Sony fanboys and hardcore gamers who can't stand the idea of their girlfriends and grandmothers smacking them down in a video game, has people of all walks lining up at 7am for vouchers almost 4 months after launch, has 3rd party developers rushing to develop games for it (if only due to the grilling they took from their shareholders for incorrectly placing their bets on the PS3 instead of the Wii), is riding an already proven new way of gaming (the DS), and it has to prove itself not the system that is collecting dust on store shelves after 1 month and is attempting to buck the proven trend of $300+ (well $400 now with inflation) too advanced for their own good systems not selling well. As I've mentioned elsewhere I think pure money concerns (as in developer cost/profits, 1st party profits, consumer income/spending, etc.) will ensure a Wii victory this round but I didn't say the console war is won yet. Nintendo could still screw up (thus far it has been its own worst enemy, friends codes I’m looking at you) and/or Microsoft/Sony may quell a shareholder revolt and go for broke. Although, even here Sony is badly positioned since its overall profits aren't great, it has last year’s problems to contend with, and its debt is problematic. Also, Microsoft is in a position, again shareholders willing, to outdo anything Sony does so for Sony to win requires Microsoft to be passive (i.e. the ball is always in Microsoft's court). I'll agree Nintendo isn't too great of a problem for either MS or Sony since they are fighting over the 40 million or so hardcore gamers who even if they buy a Wii it wouldn't be their only system anyways. However, they are inexplicably leaving Nintendo alone in the 100 million casual gamer market that the NES and PS1 & 2 dominated. So you're right Nintendo is going after a different market, the bigger one. Further this console war probably won't end this Christmas. Sony has a decent lineup this year since those games were started last year. The Wii is beginning to see excellent 3rd party games showing up down the pipeline and 2008 will be the reverse of this year. That's not a prediction but essentially fact since we know many of the games in development for the next year. I also wonder how good these PS3 games will be if as I suspect (*opinion* so save your axe) developers are cutting back resources on these games since at this point they have to finish them. You swung and caught air there chap, try backing up your arguments next time.