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Wow... some people are mixing a lot of things here.

1- 40 % ? Nope, rather 18% as someone spotted.

2- The PS2, while still strong, is rapidely declining and the PS3 is not growing fast enough.

3- Revenues are not profits. How much are they really doing on Playstation games ? Does the money invested in development, promotion is enough IN THEIR VIEW, compare to what they can make with the same amount of money on the Wii or even the Xbox 360 ?

4- PSP, dispite its huge installed base, is on the "low" side (hopefully, this might change). What was the latest PSP game that make the top10 charts outside of japan ? Furthermore, you can bet that the "boss of Activision" was among the people aware of the PSP Go, a console that is currently firing up the relations between Sony, publishers and retailers.

While the threat seems to me empty because highly improblable (not completly, after all, EA ruled Sega out during the short DC era), I don't see it as totaly stupid.

Kotic's job is to make sure Activision generate as much money as possible. Put the preassure on Sony so they cut the PS3 price and get a wider installed base, allowing Activision to sale more games, is normal.
He doesn't give a **** about Sony financial problems, and again that's normal.
But pissing off players is sure a stupid thing !