Sony is STILL in the RED. They have no cards.
Three years later the PS3 is still not close to making a profit, because from its inception until now Sony has lost money on every PS3 it has manufactured. 360 has been profitable for two years now, and the Wii has been a profit monster since launch.
Even though it is cheaper to make the PS3 now, a price drop would still me Sony would be losing money on every system, and won't affect the market much. Remember, its also cheaper to produce 360 and Wii as well. Any drop that PS3 makes (likey $50), Microsoft can counter forcefully as can Nintendo. A $350.00 PS3 could still not compete with a $150 360 Arcade, or A $199 Wii, or even a $250 360 Pro, or $350 360 Elite. And if Sony attempted a $100 drop, Nintendo and Microsoft would only need to drop their prices by $75 slow any sales boost Sony may get.
PS3 was outsold in Q1 of 2009 by the PS2 folks, I've said it before, check the NPD numbers or just ask Sony! Sony is hemmoraging money right now. With the 360 update next week adding key features, and several other killer features dropping before the holiday season, and with a great line up for the remainder of the fiscal year, Microsoft has little to worry about.
And though its line up is flimsy, the Wii continues to print its own money....so theres no question Nintendo will stay at #1.
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