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Maybe, but there are two more issues.

1. They lost a lot of money already, to increase production capacity would require investment in capital. It probably isn't worth it or there'd be plenty of PS3's. (This is the same reason Nintendo is really slow to increase production)

2. There is no guarantee that demand will still be there. As the third place console, Sony is playing it safe. They may be the first to see a decrease in demand.



I would cite regulation, but I know you will simply ignore it.