Microsoft expects PS3 price cut soon, while Reeves reiterates profit mantra

This time, it's not an analyst that's predicting a PS3 price drop. It's the competition. Microsoft's outspoken Aaron Greenberg has been celebrating the tremendous success of Xbox 360, which currently leads PS3 by more than 8 million units worldwide. Obviously, part of the 360's success comes from its competitive price. In America, the cheapest 360 is half the price of the cheapest PS3. However, Greenberg doesn't believe the price difference to be as substantial in the future. "We absolutely expect the PS3 price drop to happen in the next couple of months. We're frankly surprised it's taken this long. ... I would expect they'd have to move on price, sooner than later, for sure."

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.

This article was originally published on Joystiq.