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http://www.forbes.com/technology/200...r_0709ps3.html
Sony executives in Japan may have denied on July 6 that the PlayStation 3
videogame console's price would be slashed by $100, but everyone else knew
better: Sony's hands were tied.

On Monday, the company said the price of the 60-gigabyte version of its
system would be reduced to $499, finally putting it in competition with
Microsoft's (nasdaq: MSFT - news - people ) Xbox 360.

A 17% price cut on the overpriced console was necessary, but will hurt an
already bleeding Sony (nyse: SNE - news - people ). On March 31, the
company said its gaming business lost nearly $2 billion in revenue, and saw
earnings drop 68%. By lowering the price of the PS3, combined with some
gamers rejecting potentially defective Xbox 360s, Sony might begin selling
more units (it sold only 665,000 from January to May, compared with
Nintendo's (other-otc: NTDOY - news - people ) 1.73 million Wiis) but is
still unlikely to make much money on each unit sold.

__EOP__

Im still on the fence. I want a wii, the kids want a 360, and I saw a PS3
demo on campus yesterday (ooo neat)

--
Q. How many mathematicians does it take to change a lightbulb?
A. 1, he gives the lightbulb to 3 engineers, thus reducing the problem to a
previously solved joke.

"Shane" <> wrote in message
news:f718hh$d34$...
> http://www.forbes.com/technology/200...r_0709ps3.html
> Sony executives in Japan may have denied on July 6 that the PlayStation 3
> videogame console's price would be slashed by $100, but everyone else knew
> better: Sony's hands were tied.
>
> On Monday, the company said the price of the 60-gigabyte version of its
> system would be reduced to $499, finally putting it in competition with
> Microsoft's (nasdaq: MSFT - news - people ) Xbox 360.
>
> A 17% price cut on the overpriced console was necessary, but will hurt an
> already bleeding Sony (nyse: SNE - news - people ). On March 31, the
> company said its gaming business lost nearly $2 billion in revenue, and
> saw
> earnings drop 68%. By lowering the price of the PS3, combined with some
> gamers rejecting potentially defective Xbox 360s, Sony might begin selling
> more units (it sold only 665,000 from January to May, compared with
> Nintendo's (other-otc: NTDOY - news - people ) 1.73 million Wiis) but is
> still unlikely to make much money on each unit sold.
>
> __EOP__

The XBox 360 was well designed to fail and make sure that it would never
make any profits.
Over a Billion is going to used to try to fix all the failed XBox 360s.

It was never going to match the more reliable and well proven game consoles
from Sony.

And the next XBox will be even harder to sell thanks to the huge reliability
problems of the 360. The 360 was rushed out to beat the PS3 onto the
market.

E. Scrooge