Do you really think that the 65% drop is caused by the PS3? The PS3 is a single product for a single division of Sony. If you actually read that financial article, you would have seen that other companies in Japan, like Samsung, have suffered similiar losses in profit due to the high yen.

I disagree I think they should scale it back and not make a $900.00 console like sony did but there are many people who want top of the line graphics.  I think there neeeds to be a better balance between price point and graphics any next gen console that comes out has to be under $400.00 ideal would be $300.00 but if they can launch at $400.00 and rop within 1 months to under $300.00 that would be ideal.

400 bucks launch price is not bad at all. 300 for a basic copy is even better.

However, this is no excuse to laze on graphics. Of course, 1080p looks just fine, so they don't really need to improve that. So you're right, they can focus on gameplay now.

Im not a SONY fan but I DO like the ps3. and when it does drop to $250 bucks i will get one. Blu ray will eventually become relevant, GT5 and FF will kick off a sales storm and home will eventually hit.. well.. home..

...in 2010..

Oh and the xbox was being outsold by ps3 20-30k prior to the price cut. which means its jumped around 40k units/week. Not too shabby- a 20-25% increase is pretty decent.

I wouldn't want Sony (and Microsoft) to change their console strategy (which is selling consoles with higher-end graphics at initial loss).

The only problem with the PS3 was the very high price because of the mandatory blu-ray (and other bells and whistles). Sony thought people will buy a product on the strength of the brand alone (something that Apple has done successfully).

I wouldn't want both Sony and MS do a Nintendo. Nintendo decided not to go through the graphics route and introduce a revolutionary input. That's Nintendo's gambit-- and they were successful with it. But even if they didn't, Nintendo will still make a profit. They have a stable of IPs that will ensure that.

But I can't imagine a Sony and MS machine that didn't improve the graphics and storage. I really don't know if they can be competitive with that. That's simply not their forte.

Besides, I think the Wii will haunt Nintendo the next generation. Because of mandatory backward compatibility, the next Nintendo machine will still inherit the motion controller and sensor bar (and the successor of the DS will have to have two screens and stylus). If so, how can they implement a disruptive technology in the next generation?

I have every faith that Miyamoto and co will find a way to make the next DS and Wii very revolutionary even if not as revolutionary as the current offerings.

I totally agree. And doing so BC would come for free. I think also that both Sony and MS will try to do some new controllers inspired to Wiimote, not necessarily equal, but something new that lets act on the game in more similar to reality ways.

Edit: for propitiatory reasons I wouldn't associate the new devices to virtual reality, previous attempts were too geeky to have success! (and what maybe buried them for good was the unresponsible geeky proposal of having cybersex with VR suits instead of the real thing    )

I can't help it. I'm such a raging 360 fanboy.

hmm, lol

I'm extremely disapponted my Sony this gen, but I definitely will stick with them next gen. Honestly, I don't think they're gonna drop out. We all have that failing point sometime and Sony just happened to hit it at their prime. But they've definitely learned their lesson this time. If not, then PS4 will be their last console.