The Register

Reg Hardware

Sony has a nasty pickle on their hands.

I hear all these excuses....

Sony has a lack of games... Sony needs to lower their prices...

Its neither.

The problem is Sony should have never have done this in the first place.

For every one of their PS3's they manufactuer... they loose a few hundred in costs. In other words.... to lower the price is to loose even more money!

Nintendo soars in sales not due to popularity..but due to the fact they make about 80 bucks back give or take on manufacturering costs.... so they have actual revenue.

I'm sure games have some affect on this market as well.. I won't deny that... but the true cause is one that most people don't take into account.

Sony losing a ton of money on the PS3.... so much so that it killed their profit margin.

I seriosuly doubt they will have any way to recover from it just by lowering prices... let alone making more games! For all I know.... that market will drop into Nintendo's lap.

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