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Originally posted by: BigJim
All good questions. If MS is any indication, Sony could start to do significantly better business at $400, and IMO that will happen before the end of 2008, out of necessity.
$400 for which model? I think the Elite dragging down 360 sales has proven that people can be easily bogged down by options, and will typically feel that the more expensive package is the "real deal".
If you are suggesting that would be for the "premium", I personally don't think Sony could financially afford to take a $200 price cut by next year. Lenders haven't been too optimisitc about the firm in response to the tremendous amount of dept they carry coupled with their outlook. This in turn has made it more expensive for Sony to carry on its large debt, and doesn't lead them in an ideal spot to just slash the price of the PS3 by 33%, regardless of how poor it might do.
Hell, it was projected that Sony would lose money in its game division for the first three or so years of operation with the PS3... which was made under the assumption they would be the market leader, although not with the same type of lead the PS2 enjoyed. That would have been okay if they also managed to trojan in the Blu-Ray format in the process, but that dream of being #1 is pretty much impossible now.
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Originally posted by: BigJim
But developers won't wait to start development until then. They'll do their own due dilligence and project console sales as well as communicate with Sony about such things, so I don't think development lag at that point is a huge problem.
That sounds way too optimistic for Sony, IMO. Unless you are talking about porting over 360 games, and basically giving the system the same type of overall treatment that many publishers give the PSP.