At this point Sony's best option is unforunately to keep doing as they have been. They need to take their medicine and keep working on lowering PS3 costs so they can at least start turning a profit.
They also need to accept that this generation is lost, and their 10 year plan needs to be scuttled, even if unofficially. This isn't to say the PS3 must be abandoned like the Saturn - the system still has life in it, and they need to make sure it continues to be seen as a viable franchise, no matter where they finish.
They must rethink the "home entertainment" philosophy that put them in this hole and plan on striking back next gen with an affordable console that does what Playstation 1 and 2 did best - offer a wide variety of games for all types of gamers. That also means going after Nintendo and making their blue ocean a deeper shade of red.
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