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Gamerace said:
I'm just going to come out and say it. Flame me if you must. The PS3 should be abandoned. It was lossing them money even before the currency became an issue.

Canceling the PS3 would screw every company developing product for it.  It would be billions of dollars lost, and it would suggest that Sony would abandon their hardware if they make too many mistakes.  That would deter people from developing on Sony platforms in the future.

Abandoning the PS3 would cost more than a few billion dollars in lost profits over the next couple of decades.  You are taking a far too short-sighted strategy.  Sony does make money on hardware for all consoles prior to the PS3.  They just don't make it in the first year -- after that, it is all gravy.

The PS3 has been a huge loss for them and a huge cost.  It has cost them nearly 10 years of profits from the PS2 and it is still losing money.  However, it is still worth while keeping the playstation brand a Sony hardware product so that Sony can collect revenue in the future from it.

Next generation both Sony and Microsoft will be looking to make money.  The strong suspicion is that they'll release products not quite as high end as the 360/PS3 were when they were released, because putting out hardware that expensive is too risky.  Sony will probably outsource much of their R&D to companies who are better at those things, and they will probably buy commodity hardware, especially the CPUs, for the next system. 

There's no way they'd do another cell fiasco.  All of that cost for so little benefit.