Sony is losing hundreds of dollars on every PS3. (PS3 Manufacturing Costs) Their sales are waaaaay down because of the $500-600 price tag and lack of availability during the holiday season. For comparison, the Xbox 360 costs $300-400. Microsoft sees a price drop as a way to put one nail is Sony’s blunder. Expect prices to range from $265-355.
My sources say a price drop is very near. Expect the HD-DVD to be included in quarter 2 or 3 in the more expensive model. Toshiba is set to offer the XBox a deal they can’t refuse. Microsoft won’t be pay full price for HD-DVD units. Toshiba will sell them well below costs for some sort of royalty in Microsoft’s gaming franchise over the next couple of years. This will give Toshiba the market exposure they need as well as a pay check in the future.
