so what about the 399? Thats one of the reasons they have less revenue... its 100 dollars cheaper... yet costs were greater at the other price point...

in an entire year? Its not out of the realm of possibility.

Damn. It's a pity Sony have integrated their Computer Entertainment Division with other divisions, because I'd love to make this into a bet.

For the entire first 3/4ths of the year sony focused on lowering ps3 costs... that 1.3 billion lost revenue is already spready out through those 3 quarters... its not like its gonna hit them all at the end of the year.

What kind of response is that??? Be aware that this is only talking about the United States. So I am guessing that Sony has lost more than $2 Billion in revenue worldwide. If you believe that releasing a ps3 slim would reduce costs to that degree(also remember the R&D costs for the slim,psp go,wand) then all hope is lost.

You might want to take some more economics classes. 

Again... R&D would be spread out through the years... its not like its going to hit them all at once. Ps3 slim R&D was probablly finished with by the 2nd quarter... Everything points in the direction of Cost lowered > Price lowered in ps3 price drop.

1 move sony made this year lowered cost by I think it was a billion a year WW... 1 move... sony made more than one move this year.

SCE's already in the red roughly a billion dollars for the first half of the fiscal year. This quarter certainly isn't going to help that.

Eh, but PS3 slim is still sold at a confirmed loss (with estimates up to $100 per unit) and they're now selling much less on hardware that was actually profitable (PS2, PSP), and software revenue (the real moneymaker) has also gone down total by an alarming amount in the largest national market.  I doubt Q3 financials are going to be that rosy, even with magical "cost cutting".