Sony is struggling on all fronts. The PS3 is a distant third in the console war, and to make matters worse, the games division of Sony lost a staggering $3.3 billion (with a b) dollars in 2008. Sony loses its corporate shirt on every unit sold, and they haven't sold enough of them to even have bragging rights. There's talk of a 10-year life cycle, but by that time the XBox 720 (or whatever) will be out and nobody will want an 'antique' video game, even if it is one that's improving in graphics as it gets older.
The solution is threefold: A) better exclusive games, B) a cheaper console, or C) cut the price to make it affordable. Solution A is very expensive, so it might not happen. Solution C is just going to cause the company to lose even more money. So that leaves Solution B. One of the rumored ways of dropping the PS3's price would be to take out the Blu-Ray drive.
Maybe I'm crazy, but wasn't the whole point of the PS3 to be something to get Blu-Rays into homes, like the PS2 got DVD players into homes? That's worked, as they won the format war over HD-DVD, but… Blu-Ray adoption thus far has been terrible. Sony ended up winning for format war, but did they lose the video game console war because of it? A downgraded PS3 means you'd have to have Blu-Ray games AND normal DVD games, oftentimes across several discs.
As we've seen throughout history, people hate having to pay attention to what they're buying, and confusion would reign. Sony's not going to take the Blu-Ray out of the PS3. Prices will drop slightly, sales and bundles will increase, and still… nobody will buy the PS3. At least not until Sony picks up some exclusive titles and dumps even more money into their games and entertainment product. It takes money to make money, but how much more money can they afford to lose?
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