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Originally posted by: Spak-Spang
Costs aren't really going down. They just found out that people won't pay that much money for a BRD player.
The fact is this is a simple supply and demand equation. If the players were selling, then they would keep the higher prices and make a buttload of money.
Costs are going down, but I think you hit on the bigger reason here. Sony was recently beating their own chest in triumph over the milestone of Casino Royale at 100,000 units... however, in the typically Sony fashion, those are shipped and not sold figures. Rumor has it that, in fact, a lot of those copies have not sold. If demand is that low, and you factor in that a lot of the players on the market are currently PS3s, you are probably getting a little worried if you are producing the stand alone players. So it's really not a surprise that they have began to slash prices so drastically. I wouldn't be surprised even if they are now turning hardly any profit at all in hopes that it just might accelerate the growth of the format for more sales later on.
Let's face it too, if they don't start selling, then stores will start to slash the space they have for the format until that sends the discs and players into a death spiral (ala UMDs).