[quote name='unclenebber']I'm convinced the people running Sony right now really have no idea what the hell they're doing. Maybe they've been having a bunch of 'bring your child to work' days and getting advice from them.
And for the person who thought this was really smart business, consumers who weren't willing to pay 130 for the old console, won't pay 100.[/quote]
Monthly sales comparison...
100,000x129.99=$12,999,000
150,000x99.99=$14,998,500
and so on for each month with various ratios
When you get down to below $100, a lot more people can afford it. Yes, there are people out there that can't justify spending $130 because $30 is quite a bit of money to them. While those with more money may be more likely to replace or buy a 2nd PS2 at the lower price. Sony wouldn't do this if it meant less money made, there's no use in growing a userbase when software isn't selling much on it anymore.
If sales of your console are diminishing each month, why not sell more and make more money? It's not like it's the PS3 and the money lost from a pricecut would be a direct hit in loss.