I like sonys strategy because it's good for the consumer, they usually take a pretty hefty hit on the hardware with the premise that they'll break even on the console about 5 years down the line, then start hitting the sweet profits after that. But i'm not sure too many people realise that for each project, it takes a while for the break even point.
The problem this time is that the electronics business is getting murdered. All the other departments are making cash sure, but it's not steming the bloodbath in electronics (which is where Stringer is probably going to do a lot of his "fixing").
Now, the issue here is that Sonys stock doesn't look that great and their 5 year restructuring plan (T60) has cost a fortune and hasn't yielded the expected results - although they might achieve some cost cutting via more redundancies (10,000 have went so far, with initial expectations of another 10,000 to go). Ontop of all this , releasing the PS3 at a hefty loss would incur more loss. I guess they could stem the flow of machines onto the market, but given they'll want to race ahead of MS , i don't think they'll do that. It would take a lot of nerve (in this i mean, Sony would have to hold their nerve, not "they'd be arrogant etc...) to continue on with the loss-recoup model. Infact, would Stringer and the consortium who decide the PS3 price even allow it? No idea... What i think is more likely is that when Kutaragi hints the PS3 will be more expensive - he really does mean it.
What that level will be is anyones guess, but i don't believe it's some cunning master plan to trip MS up. A low cost PS3 incurring loses wouldn't do the stock price much favours in the short-mid term, but could well be great in the long term (but most investors are always fixed on short term it would seem)