PS3 price drop anytime soon?

[Evan]

I have a read a few conflicting things about this price drop..anyone know for sure? I would be fine with the 40gig one so I am specifically asking about that one.

[Heath Ledger]

it is inevitable and mandatory. Microsoft is already banking on this happening as well.

[Cry Havoc]

No specific date.... maybe around Thanksgiving?

[Uncle Donnie]

Doesn't seem likely anytime soon: http://www.1up.com/do/newsStory?cId=3168415

[Slydragon]

Sony is deep in a hole and Microsoft just started making a profit off the Xbox hardware, so both of them really don't want to lower the prices. Microsoft could bite the bullet and cut into or lose hardware profits to get sony by the throat.

I would be very surprised if there is one soon.



Here is the Sony story.
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Pricing the PlayStation 3 below its production cost caused Sony to lose $2.16 billion in 2007 and $1.16 billion in 2008, the company revealed today.

Sony's fiscal 2008 annual report delineated potential risk factors to its investors, outlining that "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." The loss figures were provided as an example of the "significant negative impact" introducing a new platform can cause at first.

"In the past, large-scale investment relating to capital expenditures and research and development for the manufacture of key components, including semiconductors supplied for [PlayStation 3] was also recorded within the Electronics segment," the company said.

In order to stay competitive, said Sony, it had to invest large amounts of money in research and development to introduce the PlayStation 3 into the market, and these sorts of expenditures don't always get recouped, especially if a platform "fail[s] to achieve such favorable market penetration... resulting in a significant negative impact on Sony's profitability."

Even if it can recoup its investment, Sony said, it's still possible to have lost large amounts of money on the platform's introductory period, and even a successful PS3 might take a while to replace what it cost to produce. These possible outcomes are currently a risk for the company, Sony said.



Microsoft story
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In the last six years, there's been one constant when discussing Microsoft's foray into the strange and seductive world of video game console manufacturing: they had yet to turn a profit on any of it. No more, with today's announcement of Microsoft's second quarter earnings which showed a relatively impressive six-month income of $524 million (compared to a $423m loss during the same period last year) from the the Xbox's Entertainment and Devices Division.

Before you go thinking that was all thanks to the Zune and PC game sales, the company's 10-Q filing states that the EDD's increased revenue was "primarily due to increased Xbox 360 platform sales." During the last six months they say Xbox platform and PC game revenue increased 35% as a result of "increased Xbox 360 console sales, video game sales led by Halo 3, Xbox Live revenues, and Xbox 360 accessory sales." (Sounds like EDD bossman Robbie Bach nailed it).

The 6.1 million Xbox 360 consoles and 4.82 million copies of Halo 3 sold in the first half of fiscal '08 sure helped, but so did "decreased Xbox 360 manufacturing costs" and "a decline in Xbox 360 platform marketing expenses" – it's costing less to build them and less to promote the brand. But they'll need to hold on far longer than one quarter to make their sojourn into the living rooms of America worthwhile; for the rest of fiscal '08 they "expect revenue to increase due to increased sales of Xbox 360 consoles and related games, accessories, and services." Yup, that sounds about right.

[florige]

I wouldn't hold my breath. The only reason I broke down and got on was they came out with the 40gb console. Other than that I would probably still have my 360. The games for the 360 are still better than the PS3 right now anyway. The only thing the PS3 has going for them now is they have the best Blu-Ray on the market.