Things aren’t exactly looking up for Sony with the money sponge that is the PlayStation 3 sucking up so much money, that profits from other divisions (movies and HDTVs) have to be used to plug up this gaping hole. Is there an end to this bleeding? Already losing more than $250 on each 60GB model sold, Sony could toy with the idea of introducing a price cut sometime this year in order to stem further losses. The logic behind this move is to increase the user install base, where the magic of software sales will then churn more money than the loss of each console. The million dollar question is - will Sony succeed?

This move is an unprecedented first in the industry, with the PlayStation 3 being available on store shelves for slightly over a couple of months. Most consoles take at least one year or more before a small price drop is announced, and should Sony be forced to take such a move, it can only mean the company is really mired in trouble.

I personally believe that the first half of this year is definitely too early to call for a price cut, and it remains to be seen whether hardware sales in the subsequent months are more than capable of stemming the tide. Of course, it also depends on how much more losses Sony is willing to take on PS3 hardware. Time also plays a very important role through potential component cost savings and a streamlined production. What are your thoughts? As it is, PS3 scalpers are already starting to sell their consoles for below the market price on eBay.

Source: GameDaily

You can leave a comment, or trackback from your own site. You can follow any responses to this entry through the RSS 2.0 feed. Add to Del.icio.us