"Such factors, including price cuts to some extent, are factored in," under our plan to break even in fiscal 2007, Yuhara said.

While stressing that no decision has been made on PS3 price cuts, Yuhara acknowledged it would be a good scenario for Sony if the machine sells in enough numbers so a price cut would make sense strategically.

Two things here: one, it seems Sony has a price cut lined up prior to Summer of '08, and two, once again Sony is thinking backwards.

The second part of that paragraph, that Yuhara wants to be able to sell enough numbers so that a price cut would make sense, well, it makes no sense.

Basically, Sony is hoping that enough suckers will buy the machine for $600 so their purchase will subsidize a price cut for the more patient gamers. Once again, screwing the consumer. Wouldn't it make a whole lot more sense to lower the price now, which would cause a huge increase in sales instead of hoping that all of those PS3s sitting on store shelves will somehow magically be purchased by leprechauns with handfuls of gold?

Seriously, cut the price, you get good press and lots of sales and demand is high again. This strategy of trying to hit some sort of target of selling "x" machines at "$600" isn't working. In order to cut your losses, Sony, you're going to have to cut your losses!