Lee Chen

Sony's Big Blu-Ray Gamble

If you are losing so much money per console, you want to control the number of consoles sold to contain the loss. Sony will continue to control the number of console sold until the blue ray price dropping to a significantly lower price than it is today - it could be a 12-month process.
It is clear the real hard core gamers prefer PS3 vs. Xbox 360, Xbox 360 is not moving at all in Japan and it has not really generating enough true followers with big revenue for MSFT.
The real story for SONY is: can PS2 continue to sell in huge quantity before SONY finally be able to cut the cost of PS3 and to sell PS3 in even larger quantity.
It is not PS3 vs. Xbox 360; it is PS2+PS3 vs. Xbox+Xbox 360. As long as Sony can maintain 3 to 1 advantage over the next 12 months, Sony is still the king. We should expect PS3 will have lower enough cost for Sony to push for the volume of PS3