What do you mean? PS3 will be expensive, but to say $600? or worse, 800? or am I mistaken. I dont understand. And yes MS is losing money on cosoles, but soon they might use cheaper parts, and of course thermal is right, they make money on accessories. 50 Dollars for a wireless controller? Dang. Xbox 360 will be a good investment during the second or third wave, for now survive on your xbox or PS2

If you don't think sony is going to be losing a lot of money on ps3 you're wrong!

Me neither, but they are gonna be a lot of money.
Also, they lose money per 360, but why else do you think they made more cores? Just so people have to pay more to get the accesories, that's how they get profit

The companies hardly make money on consoles. Thats what the games and what not are for.

Yeah they don't make a lot on consoles, but if the console is so much money, I don't know. Microsoft wants to games, they don't need as much money from xboxes. Sony, however, does this from a business POV and want money. Maybe thats why Sony won't lose money on thiese

It's probably their plan. By making them cost less, more people buy them, causing more people do buy the stuff they DO make a profit on.

Well it isn't actually Microsoft losing profit, it is Microsoft losing profit in the console production devision. Microsoft could lose a thousand dollars per 360 and still make a profit : ) Just not on the consoles

That is the advantage of having a mega large corporation that has multiple divisions. You can afford to have a loss in one and have the others make it up. The corporation as a whole would still be making a profit (well, that's if the other divisions were doing good).

I think it is a very smart decision to take a loss on the consoles and then make up the profits with the accessories. It just wouldn't work if you did it the other way around. Could it work if you just sold the console and accessories at the same profit? Probably not as well. Less people would be able to get the console and all sales would go down for everything.

I'm glad they did this, cause it gives Sony something to think about when the PS3 is released. Competition can sometimes be such a good thing.