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So, with Sony obviously reeling as a company financially right now, how would it look if Nintendo and MS (who are the big winners this holiday season; ESPECIALLY Nintendo) make a profit from their gaming sector and Sony does not (struggles are throughout the company, not just in gaming)?

No PS3 price cut anytime remotely close to soon. Profitability. Sony doesn't care about VGC fanboys. They have a company to run and mouths to feed. They will accept 3rd-place-but-profitable and then gear up for the next console round.