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Cypher1980 said:
amirnetz said:

The only way the PS3 will die is for Sony to stop producing it. I know it seems far fetched right now but if the PS3 does not get to profitability within 12 months then I think discontinuation will become a relevant question.

Sony is going to lose $1 Billion this year on the PS3. This is a huge amount for the company that has barely squeezed $20M in profits last quarter and is actually having a negative cash flow.

Sony cannot sacrifice the whole company for one product. The PS3 business either become profitable in the next year or they will need to start shutting down operations.

 

If Sony shut down production of the PS3 before 2016 then they will have failed to keep to their 10 year promise for the console.

It will almost certainly mean Sony will be forced to exit the Video game market as people will not feel able to trust them.

I just cannot see it happening. Sony fans are some of the most loyal in the world. Second only to Apple devotees in my opinion.

However even they will reach a breaking point if they are betrayed in this way. 

If you think that the shareholders of Sony care so much about the public bragging of the PR guys so they are willing to pay billions just to stand behind these lame promises then you are sadly mistaken.

This is business. And in business Sony will do what is write for Sony. If it means disappointing their loyal audiance in order to make several billions more then so be it. Yes, they will take into account the cost of breaking the promise. And don't get me wrong. It is going to be costly - perhaps to the degree that they will not even attempt to produce a PS4.

But it will be an option that they'll have to consider for the benefit of the sharehoilders. Sony cannot survive by being boneheads.

 



Prediction made on 11/1/2008:

Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox,  9M PS3