The smart move for Sony is to ride the storm and focus on Blu-ray. They won that war, hopefully they can recoup the PS3 blunders over the long run.
As for the PS3, throw money around. Sony may be suffering a bit, but they're not broke. This is a long haul fight and they should look at MS's strategy on how to fight a long battle with money. They have the internal studios to keep themselves relevant... One could argue that they have at least five of the top ten internal studios in all of gaming.
They're going to lose their ass on the PS3, that much is certain. The question remains whether Sony is acknowledging that and is going to try to make that money back on the PS4 in 2011 or 2012 or not. They were an obnoxiously proud company, but much of that element is gone. Hopefully, they've adopted more of Microsoft's strategy of "money beats pride" and changes to suit the new market.
Take, for example, Netflix on the 360. Suddenly, many Sony-owned films were taken off the shelf because MS was profiting from them. That's not a smart move. Go for the money. Columbia would still make money from 360 movies. Keep your entities separate and swallow your pride. You don't see MS threatening to remove codecs from Blu-ray discs played on the PS3. They're whores. They just want money.
Operate like that and Sony will be just fine.
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