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Originally Posted by Lasereth
That's pointless unless you have an opinion to go with it. Why are they going to "lose so much money?" They just dropped the price of their console from $350 to $185. I don't think that's a move that'll result in a loss of money. On top of that, their handheld plays movies (I don't care) which many people will love. It's a great system with a competitive price.
-Lasereth
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That's because the PS2 is relatively cheap to manufacture, its basically using 4 year old technology. Here, you have the PSP, with all these new bells and whistles, with its screen, proprietary disc drive, etc, which sony is marketing at a cheap price. Obiviously it is good for consumers, but bad for Sony...at first. Microsoft went through the same thing when the Xbox was launched, they were losing a ton of money at first, but now that the Xbox has gained some recognition, it has started to churn a steady profit off hardware sales, rather than making the majority of your money off software.