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SMcc1887 said:
5.....Although it's unlikely, If Sony got slaughtered in the rest of this Gen the would still remain in the videogame industry. Eg. In the 2 previous Gens Sony has destroyed Nintendo.....now look at them.

There's my cue!

Sony didn't destroying Nintendo isn't really relevant. The problem lies in the fact that the PS3 is (or was, at least) destroying Sony. The N64 or Gamecube didn't do this to Nintendo. If Sony cannot make a profit on their games division, they aren't going to stay in the industry. I think they're doing fine now, but another PS3-like disaster would end it. On the other hand, Nintendo would stay even if they could only manage Gamecube-like sales.