Bodhesatva is absolutely right, but few things you should notice about Sonys (gaming divisions) increasing losses is, that in the Q4 2006 you can see the affect of overproducing the PS3, it hurts in short term a lot more than any pricecut Sony is capable to make. So Q4 2007 won't be as bad as Q4 2006. Also Q3 and Q4 2006 was affected by PS3 launch, which will not affect Q3 and Q4 2007.
But, Sony has increased its 1st party development, which costs turn into money in somewhere between Q1 2008 to Q4 2009 (for PS3, PSP development makes money earlier).
@Frasman: I don't see a crash in a situation, where M$ and Sony would leave the business. Games in development would be made ready or games at early stage of development would be made for Nintendo platforms and publishers would know about it early. They simply would start to make games for Nintendo platforms. But monopoly wouldn't be a good thing. In a way i see more problems in a situation, where developers are making games for a platform which is expensive to develope for and has bad sales. For example, one (failed) PS3 game can easilly bankrupt any smaller publisher.
Ei Kiinasti.
Eikä Japanisti.
Vaan pannaan jalalla koreasti.
Nintendo games sell only on Nintendo system.
