According to Wedbush Morgan Securities Sony might delay the release if Microsoft drops the price of the 1st generation Xbox to no lower than $99, and if the Xbox 360 console is not a huge success at launch. In that case Sony might drop the price of PlayStation 2 to $99, which would still bring the company profit.
The reasoning behind the strategy is that dropping the PS2 price would disrupt the Xbox 360 launch. In that scenario Microsoft would be selling both the Xbox (at $99) and Xbox 360 (at $299.99?) at loss, while Sony would still be making profit with PS2.
It is quite unlikely that Xbox 360 would do so bad at launch that Sony could afford delaying the launch of PS3. Then again the plan could save Sony alot of money. It is estimated that Sony could lose more than $1 billion on PS3 hardware.
Source:
GameSpot
Written by: Jari Ketola @ 3 Aug 2005 4:52