Actually, I don't think that their current financial status is the biggest reason. They released two consoles that were cheap and less powerfull than the competitors and won by huge margins. They released one console that was expensive and powerfull and lost. It's clear that people prefer price, expensive consoles always fail. A gen never was won by a console launched for more than US$ 300 in USA.

In Japan the PS2 was still beating the 360 until fairly recently in sales.  Probably it was receiving some relevant level of sales until 2010 like Wii.  As I said they're both being retired at about the same time.  Sony has stopped producing PS2 consoles and Nintendo seems to have stopped making any real effort with the original Wii.

In the bigger picture, the 7th Gen is going to be remembered primarily as the era of the advent of HD Graphics in home video games (since Wii U is the first Nintendo console with HD video output and since it's really only more powerful versus 360 and PS3 in about the same respect as Wii to PS2 and not even to the extent that 360 and PS3 are to Wii, then Wii U should be considered Nintendo's 7th Gen console).  Since the original Wii was never capable of outputting HD visuals, then it really shouldn't be counted as a 7th Gen console.

I really don't know how Sony lost since they sold close to 600,000 consoles last week and Wii bately managed to sell 200,000, and that was a normal week at the end of this gen.

I want it this year. Screw your thread.

Like I said, you're completely ignoring earlier this gen. You are somehow thinking everything from 2010 onwards are the only years relavant. Its not really hard to go see how many Wiis were sold in 07/08/09. Performance doesn't matter, sales do. They are 30m ahead and unlike the PS3 weren't selling at a MASSIVE loss early in the gen.

Sony lost because the Wii has sold nearly 100m and the PS3 just above 70m... End of story. Next gen has already started, and if the PS4 launches in 2014 it'll end up last; MS will surely launch x3ox this year so it would only be stupid of Sony to wait a whole year to release the PS4. Expect the x3ox to be on par with PS4 - even if the PS4 is launched a year later. Only the hardcore SOny fans would wait a whole year to get a next gen machine, and in the mean time Nintendo and MS will sell new systems  like crazy, leaving SOny in the dust. No, Sony NEEDS to release the PS4 this year or be last next gen the whole gen. They'll start in last place and they'll end in last place if your prediction holds true.

Oh, they might announce it at E3 this year just to stoke the fires, but even if they're following a schedule like Nintendo's with  Wii U, it still wouldn't be coming out 'til Holiday 2014.

And you're really putting too much emphasis on the importance of a year's head start.  Just look at the current gen.  Playstation 3 launched one year later and at a price tag of $200 more than the 360, yet they're still going to pass 360 when everything is over and done with.  This time IF 360 manages to get theirs out in 2013 the Playstation would still be launching only a year later and more than likely at no more than at a $100.00 higher price tag.

Now would it really be that disastrous for Sony to release a year later?  Where would it really hurt them?  Well, it would hurt them in America, but as demonstrated this gen, that's really not going to hurt them that much since they could still beat the 360's successor with strong sales in the European and Japanese marketplace.  PS3 will continue to dominate in Europe 'til the release of PS4 whenever that is and Microsoft's consoles will never catch on in Japan.

Really, the smartest move Sony can make to keep their old fans and to attract new ones ( since their games lineup is not as casual friendly as Nintendo's) is to release another State of the Art Console with a price point that is initially more attractive than the PS3's was at launch.

An honestly priced (ie. that they're not losing on and that is as full of the greatest tech that can be bought for the price at the time) $500 console released Holiday 2014 is their best bet.

I hope your right, it would give MS yet another head start and my faction another generation of lulz :P

You're really predicting their doom imo...

First off; if Sony launches in late 2014, it wouldn't be a ONE years head start; it would be TWO years head start - since Wii U lanuched late in 2012. Secondly, it wasn't until AFTER the price drop the PS3 really picked up steam, so launching one year after x3ox with a higher price tag wouldn't benefit PS4, and soon they'd have to cut the price (like they did with PS3) and they'd be losing money (like with the PS3). Not a good strategy.

And with this strategy they would lose in Japan AND EU. Japanese aren't "graphic whores", meaning they would settle for something less powerful than a beastly PS4; enter Wii U. With a two years head start AND much cheaper price point they're set to dominate in Japan leaving the PS4 in the dust. And you gotta remember that EU is in a bad financial situation, which means that should x3ox launch one year a head with a cheaper price point Sony surely would lose that market as well leaving them with nothing. Launching at $500 would more or less guarantee a €500 price tag in EU, which translate to $650 - and that's something Europeans aren't ready to pay right now...

With your strategy Sony would ONLY attract old PS-fans, and not gaining anything else. This would be their last console.

That huge blank space is for the LAst Guardian and BTS.