As soon as they come to know how to make money out of thin air.

Its an investment, a much cheaper one than free psn for 8+ years.

Gaikai was like 3 billion.

Yah Sony doesn't have money to burn but they already own this.

Not to mention the Vita TV would skyrocket and the PS4 would dominate. 10 million holiday sales without even trying.

Plus it would encourage ppl to not wait cause its time limited.

and the first post nails it 

You understand how much sony has to pay for running the servers of PS3s and then they have to pay for all the broadband of streaming it to you (yeah, Sony don't get free internet!).  And they have to pay money to the publisher of the games that are being played (say if I play a FF game, then Sony has to pay something to SE for me playing their game). Gaikai has operating costs!

They don't need to do that, they've already made the strongest console hardware wise, at a better price than the competitor (same price for higher resolutions, game performance, etc.), and because of the MS E3 botch with the whole DRM thing, Sony can keep riding the hype train. The exclusives will put them over the top, just as it put the PS3 over the 360 towards the end of the 7th gen. With no year long lead or price advantage for MS, PlayStation 4 could turn Xbox One into Xbox Done.

Money that isn't invested is stagnating.

No way they wouldn't recoup the cost quickly in boosted hardware and software sales, even the Wii U would have trouble against DAT combined PS library. Hell thus would be profitable in 6 months 8 tops.

Some ppl are convinced that the battle is over and PS4 won, but this right here would be unstoppable, regardless of how much money MS has or System Sellers the Wii U has. They could do nothing against this.

Pretty much. And I doubt you can get any publisher on board to give any of their games just away like that.

I'm sure Sony has a better idea of what would earn them money than you do.

Well first of all there are not nearly enough people who care about PSNow to recoup anything.

Second, PSNow is fucking expensive. The development and maintenance is expensive. Sony is at the brink of financial meltdown and having such a money drag slamming a whole 4 financial quarters will not do them any good.

I don't think the "But next year we will make money" excuse will work any longer since they've been saying that for at least 2 years now.

You really can't say they would win the generation though. Sure they would sell a ton of new PS4s but can we say they win the generation? The Wii sold the most last year, but I am hard pressed to say that the Wii won last gen.