``The 5 percent margin target is reachable if there is no price cut in the PS3,'' said Hitoshi Kuriyama, an analyst at Merrill Lynch Japan Securities Co., who has a ``buy'' rating on Sony. ``But I'm expecting a 20 percent price cut this fiscal year, and if that happens, the margin will not reach 5 percent.''
Not to big of an oops. According to ML - Sony will reach their 5% target if they leave the price of the PS3 as it is. Even if they drop the price and subsidize the machine even more - they still gain. Another intangible is the cost Sony has maintained, which will certainly go down with the volume of PS3's the sell.
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