I can not see them terminating the PS3 right now. It would be better to sell the entire division, as that would at least give them the money to survive this downturn as a company instead of just destroying it for nothing. I think more likely if they are really hurting, and they have to decide on a survival strategy regardless of hardware sales, they will just terminate the $399 model for the time being and just leave the $499 Drake's Fortune model out there until next fall or maybe even 2010 when things are looking up. The sales would blow and they would need to cut production to a trickle but it would leave them in the game and perhaps drive a short term small sales spike as some people rush to get the 'cheap' PS3. The install base is large enough that they will still get 3rd party support as long as they keep putting out games of their own. That is not a pretty picture but it will leave them in position to try for next time, if the current situation is killing them.
Proud member of the Sonic Support Squad
