Certainly, a lower priced PS3 would have helped the install base during an economically depressed holiday season. However, SCEE's Reeves said very frankly on the PlayStation site that "the most important thing for us as a company in the very short term is for us to start making money. This is a pledge that was made last March and is something that we are still very much on target to achieve."
With the cost of manufacturing a PS3 plummeting, it won't be long until PS3 units can be sold at a profit. "Once we have achieved this, I think it will be a very exciting time for PlayStation. Once we have alleviated that specific pressure, we can move forward at a rate of knots," Reeves promised.