PS3 May Be In Trouble = A Cheaper SP3

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The discussion centers on the potential for a price drop in the PlayStation 3 (PS3) due to profitability concerns. The PS3's high production costs, driven by advanced processing power and Blu-ray technology, make it challenging to sell at a lower price while still achieving profitability. The competition from the Xbox 360, which was released earlier and has a lower cost structure, allows Microsoft to undercut Sony's pricing. Additionally, the limited number of exclusive games for the PS3 diminishes its appeal compared to the Xbox 360, especially in markets where pirated games are prevalent. Despite Sony's initial advantage in the format war for Blu-ray, its adoption has not been as strong as anticipated. There are expectations for increased promotional efforts to boost Blu-ray's market share, including joint marketing campaigns between Sony and Microsoft. Overall, the PS3's high price and competition from the Xbox 360 pose significant challenges for Sony's profitability and market position.
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Since it's in trouble with respect to profits do any of you predict a cheaper PS3? Could they actually make a profit with a cheaper than $ 400 PS3? Considering the fact that Blu Ray players themselves are $ 300 ... probably not.

http://www.yahoo.com/s/956782
 
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Maybe, but then the profit may not be from the sale of the actual console...
 
NO kidding. they could give away the consoles and probably not see a dent in their bottom line. Considering that more people would be buying games
 
Sony has been in a lot of trouble even since before the PS3 came out. They decided to amp up the processing power of the system fairly high making it rather expensive considering the components alone. This was supposed to outdo XBox, which it technically does, but the problem is developers may or may not be able to take full advantage of the system's full capabilities. So long as the games are only on par with XBox and occasionally somewhat better what's the reason to purchase the more expensive console? Fewer game developers, particularly larger companies, are willing to maintain exclusive contracts now as well so there is less likelihood there will be many popular games you can only get on one system. BluRay was a big gamble for them too since they had no idea whether or not it would become a standard or die out. So far I don't think it has caught on strongly enough.

XBox 360 came out long before PS3 and microsoft has already made the money they needed off the box and can afford to continually bring down the price and undercut Sony. I'm pretty sure their box is much cheaper component-wise aswell.
 
I was pretty psyched about the PS3, but it didnt really catch on. One reason around here is that you can get a lot of pirated game cd's for the XBox 360 and you can't get those for the PS3. Its easier to stomach a cd for about $1 than a $40-$90 cd.
 
I was under the impression that Sony having won the format wars will be in quite a good position financially. I still prefer it and it is worth the hefty price tag. Compared to the other competition it is something quite other worldly.
 
TheStatutoryApe said:
BluRay was a big gamble for them too since they had no idea whether or not it would become a standard or die out. So far I don't think it has caught on strongly enough.

http://www.engadgethd.com/2008/09/21/nielsen-videoscan-high-def-market-share-for-week-ending-septembe/

Also, https://www.amazon.com/dp/B000PALZE0/?tag=pfamazon01-20.

I think we'll start seeing a lot more deals like this in the coming months across the industry to try and increase BD's market share.

The funniest part of all this lately is the joint marketing campaign for BD by Sony and Microsoft. They're giving away BD disks in the Oct issue of Wired while promoting Vaio and Vista.
 

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