I disagree that Sony is losing money on the PS3. Acutally Sony is making a slight profit on every console. Its just that if they reduce the price by $100, they will start losing money and to them its just not worth it to increase the market share that way. Sony has decided to sit pretty at the third spot at least for this season. They know that all they have to do is to make the PS3 survive, and they live to fight another day. Next generation, the console wars begin from square one again.
For folks who think the PS3 is doomed and compare it to Dreamcast, shud keep in mind that the video game market is constantly increasing and unlike the Dreamcast's time there is space now for 3 consoles to thrive at the same time. Sony already have the best exclusives of 2008 http://au.games.ign.com/articles/937/937519p1.html and now with Home they provide undeniable value to the potential customer. This will mean that they will continue to rack up PS3 sales and it will remain a viable console.
It is better to die on one's feet
then live on one's knees
