It's question of balance on the PS3.
If they leave the price the same and sales continue to decline due to pricing, they may still hit their margin figure (since the less PS3's they sell, the less money they lose on them), but going forward they will have crippled the future of PS3 since the installed base will remain low compared to other consoles and game companies will shift resources to the larger markets. Without games, Sony can't make money with the PS3.
If they cut the PS3 price, they may stimulate demand, but they will still be losing money on each unit, so the overall loss will be higher and they won't likely hit their margin number. It would still preserve their chance of making money on PS3 games going forward, though, if it grows the installed base.
Stringer will have to decide whether it's better to keep his promise to the financial community (5% margin) and hurt futures, or miss his target to improve future chances (and probably lose his job).
Ah well, that's why he gets the big bucks...
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