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Prices change, and companies can make deals with manufactures to get prices even lower.
I think Sony's already played that card a long time ago.
LinkBasically, Sony
had signed up Samsung to provide the screens for the PSP, but then they noticed that it was physically impossible for Samsung to make as many screens as Sony was expecting to sell, so they signed up Sharp too, with a so-called "huge" order for PSP screens.
Right now, I don't think Sony's actually making a reasonable attempt for a piece of the handheld market. I think that the PSP's basically a failure at this point. But Sony thought it was going to be so unbelieveably huge that they made massive commitments, so they're going to take a huge bath on it, one way or the other.
So they're in "clearance" mode right now. It's not that they're selling the system for hundreds of dollars in losses. They've
already lost that money, and they're hoping to get a few dollars worth of band-aids.
If they put on a brave face, look confident, and people think they have a grand plan, well then, that's all the better for Sony.