But, PSP software sales are definitely in the crapper.

 umm Square Enix is still with Sony. The major franchises like the FF## series is on the PS3. Square really isnt known for much more in America at least. They have DQ but thats more popular in Japan then Europe and America. And really DQ:S is one game, that doesnt mean that they wont make a DQ game for Sony. 

As for the other companies:

Capcom - who cares.. havent really enjoyed any of their games since RE3, RE:UC looks like crap and plays even worse according to IGN. Wii Zapper FTL.

Namco Bandai - umm... who cares. The can stay on HD-DVD with their anime too. Let them lose money all they want. Me and thousands of others will download their animes anyways.

Tecmo - makes? if this is the one who makes Tekken.. Tekken 6 is PS3 only.

Koei - umm... Dynasty Warriors 6 is PS3 only.

Konami - never was very big in Japan. MGS4 = PS3 exclusive.  

Lets say this clear ,Capcom are saying nonsenses .They havent released a single PS3 game yet and the PSP has given them their only two million seller in the recent years yet they dare say the plattforms are doing crap .Absolutely nonsense .

Please dont tell BS .Namco Bandai hasnt cancelled a single PS3 game .You are confounding it with Konami who was rumoured to have cancelled some PS3 games but finally didnt .

 Nintendo and SquareEnix just finished putting out Final Fantasy 1, 2, 4, 5, 6 on the GBA, 3 on the DS.  4 is being remade for the DS.  The Crystal Bearers is being put on the Wii, XII Revenant Wings, Tactics A2, and Ring of Fates on the DS.  SquareEnix is doing a metric ton of games on Nintendo platforms right now.

Who cares? I think Sony does. Do you really think Sony can afford to lose these companies? You just named the biggest Japanese developers.

Capcom - Makers of Resident Evil, Devil May Cry, Street Fighter, Lost Planet, Okami. Yeah...Sony can disregard them.

Namco Bandai - Actual makers of Tekken, Soul Caliber, Ridge Racer, Xenosaga, Tales of.... I'm surprised Sony gives them a license.

Tecmo - Um...Ninja Gaiden

Koei - Very game specific company, but they should do okay on any console 

Konami - Castlevania, MGS, Winning Eleven, DDR. They're not that big

I think MS and Nintendo will be happy to have any of these companies on their team.

As for the other companies:

Capcom - who cares.. havent really enjoyed any of their games since RE3, RE:UC looks like crap and plays even worse according to IGN. Wii Zapper FTL.

Has been making some great new IPs like Lost Planet and Dead Rising. 

Namco Bandai - umm... who cares. The can stay on HD-DVD with their anime too. Let them lose money all they want. Me and thousands of others will download their animes anyways.

These are the guys who make Tekken, as well as Dragonball Z & Soul Caliber! 

Tecmo - makes? if this is the one who makes Tekken.. Tekken 6 is PS3 only.

Tecmo are the makers of Ninja Gaiden and the "Bouncing Boob Fest" DOA! 

Koei - umm... Dynasty Warriors 6 is PS3 only.

Dynasty Warriors: Gundam is going to be on both PS3 and 360, and Orochi Warriors will be on 360 & PS2!

Konami - never was very big in Japan. MGS4 = PS3 exclusive.

I think you've said enough. Konami was never very big in Japan?

Ugh, so many falsehoods, so much hate. 

Diomedes, you're wrong. Most obviously, Namco recently canceled the PS3 version of Beautiful Katamari:

http://www.bitfood.com/?p=182

As for unnamed titles, this should be relevant:

http://www.gamasutra.com/php-bin/news_index.php?story=14502

Relevant text: "The VarietyAsiaOnline article continues by suggesting that Namco Bandai, Sega and Capcom will cut shipments of titles for Sony formats by 30 to 40 percent, with Capcom set to increase shipments by 81 percent to 4.7 million units."

In the future, Diomedes, please don't tell people they are "BSing," especially when they are right, and you are wrong.  

Threads like these are why I love Video Game Message Boards.

This is officially the worst post I've EVER read on this forum. There's just so much wrong with it. You just dismissed every 3rd party Sony needs, and PS3 certainly doesn't SE's "major franchises." It has ONE. Dragon Quest went to DS and Wii, the producer of the Mana series already said he wanted the next game on Wii, SaGa is nowhere to be found and Nomura said the KH spinoff is for a handheld so that rules out PS3 automatically, and KH3 isn't coming anytime soon.