Originally Posted by kjtatum
I've mentioned several times that the amount Sony is losing per PS3 doesn't jive with the high cost of the standalone players. Someone's getting some profit. Granted, volume on PS3 will be much higher, but you could easily create more BD volume by lowering prices.
But you are not taking into account that the Playstation 3 is a video game system primarily, not a Blu-ray standalone player primarily. Forget all the people screaming "Websters Dictionary says...........".
Because it's a video game system first, Sony looks to recoup the losses on the system through game sales, just like it did with the Playstation and Playstation 2. Just as all game console manufacturers do. I can not remember a game console that sold at a profit out of the gate. That's why the PS3 is $499-$599. But those losses right now are so big per console that any drop in price will send Sony diving pretty deep into losses on the SCEA division. Those kind of losses and a lack of sales of software killed many a system, including my still-darling Sega Dreamcast.
Standalone CE's aren't going to sell their products for a loss because they have no way or recouping the cost unless studios decide to try and subsidize a portion of each player to a CE. I don't see any of them doing that. So all lowering cost is going to do is accellerate their own losses per unit sold. And with Sony losing money on the PS3 I don't see them having any to divert to Samsung and co. So those players will have to remain well outside of mainstream consumer pricing until the technology comes down, which the BDA doesn't think can happen for a good while.