The question should not be when PS3 turns it around, but rather, when PS3 recoups its losses and starts making a profit for Sony.
The way things are going it wont be anytime soon. But Sony is fortunate that the gaming market is still growing. Thus they are selling more consoles. However, the competition is pushing Sony in to a corner and not letting them secure any more market share.
If they can still sell enough consoles to make a profit on software royalties things will turn around for them. Otherwise the PS3 will go down as a failure.
The second is more unlikely since the install base is currently growing. Its a good sign for Sony. I expect theyll start making profit after the next Christmas season, and will slowly recoup their past losses until they become a financial success in the years that follow before the 8th gen begins. But by comparison Nintendo and even MS will make Sony look bad.
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