John Koller, director of Hardware Marketing, had a lot to say about the price drop to IGN. He revealed that Sony isn’t making any loss on $250 and they’ve been planning for the price drop for a long time. “It is still profitable, we’re not going into the red,” he revealed.

He said that they were planning for the price drop since a year, and it was required to boost sales.

“We knew the time was right from a market standpoint to drop the price to $249, it’s a really good time to make the announcement and we expect a lot of traction.”

“We’ve had this price drop in mind for over a year.”

He also hopes the price drop will get more Wii and Xbox 360 owners to buy the PS3.

“We’re opening our arms for the Xbox 360 and Wii owners to come over.” “There’s a real opportunity for those consumers to be able to play, what we view, are the best games in the industry on the PS3 this fall.

“There’s a significant number of Xbox 360 and Wii owners who would like that second console and want to have the opportunity to play these exclusive games and content experiences, and this new price point allows them to do that.”