With Sony’s giving division facing an operating loss of approximately $1.6 billion (if not more) for the fiscal year ending in March, it appears that the electronics giant may be considering price cuts for the PS3 as a way to break even. PS3 price cuts is one of several strategies that Sony will consider in order to prop up it’s overall profits and also bring the gaming division in line with expectations. Ironically it was also PS3 price cuts in Japan that Sony blamed for it’s recent company profit shortfalls.

Ok.. now for a little editorializing…

2006 was certainly a horrible year for Sony. Between the laptop battery recalls, the PS3 hardware manufacturing issues, the shortage of PS3 components, and the success of the Nintendo Wii, nothing has really gone right for Sony. But really folks.. Sony is in many ways to blame for all of this. We have a gaming console that tried to be a bit too much. We also had a gaming machine that was priced way beyond any other gaming console out there. Did Sony really expect the PS3 to be jumping off the shelves even if the supply was there?

What people have really discovered over the last few months is actually quite simple – next generation graphics is important but it’s not everything. Consider the Nintendo Wii. We’ll be frank here – the graphics stink. But it’s all about the game play and of course, the content. The Wii is fun. The Wii makes you stand up and work. It makes you interact with your friends. It brings a smile to your face.

What does the PS3 do? Well it burns a hole in your wallet. It makes you realize that you need a better television set and a better sound system. It makes you lift weights because the darn console is so heavy. You get the picture.

So the final saving grace might just be price cuts for the PS3. There isn’t any doubt that the PlayStation 3 will be a successful product over time. Afterall – it’s still a PlayStation console. Yet what we’ve seen is a company that in many ways blundered out of the starting gate and as a result, suffered profit losses that would make an investor weep.

For the consumer – this is a good thing of course. I welcome a price cut and I could care less if Sony makes less money as a result. There isn’t any way that I’m plopping down $600 bucks for a gaming console so I eagerly await the cuts if they happen.

[Check it out via Crave]

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