blu-ray the spike..the ps3 the sledge hammer...!

[joeorc]

if this is true...hammer time:

Several posters at SlickDeals.net are reporting that the PS3 may have yet another price drop towards the end of the month. Many are rumoring that a $299 PS3 will be announced on January 28. SlickDeals.net is a website dedicated to providing consumers with the latest prices in electronics, breaking the news of both of the previous PS3 price drops and the 360 price drop a few weeks early, along with the CheapAssGamer forums.

Though it does seem early for this to occur, Sony did recently announce that the price of manufacturing of the PS3 did drop from $800 per unit at the launch to $400 currently. This is mainly due to the success of Blu Ray, especially with Warner Bros. going Blu Ray exclusive earlier this month. Now there are also rumors that Paramount found a loophole in their HD DVD exclusivity contract and will be going Blu Ray as well - leaving Universal and Dreamworks as the only remaining HD DVD studios.

Financially, the price cut makes sense, consoles have historically been sold at a loss until the tail end of their lifetime. The only consoles not sold at a loss are the Sega Saturn(sold at the price to manufacture) and the Nintendo Wii(sold at a $100 profit for Nintendo). Nintendo, Microsoft, and Sony make most of its money off of game licensing, not the actual console. For every game released, they developer must pay $10,000 worth of licensing fees to Sony(its traditionally been $20,000 for all 3 companies, but this was another cut Sony made to encourage developers recently). They also make a bulk of their profit from peripherals, like memory cards and controllers.

Still, I personally think it may be a bit too early for another price cut.

http://exgn.wordpress.com/2008/01/21...er-price-drop/