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makingmusic476 said:

The focus of research and development must be on software, he said, adding: “The most important thing is that, to improve organisational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo.”[/quote]

Sony runs right into the strengths of Microsoft and Nintendo if the argument is the future is in software.

One has to also be concerns that Sony might end up being in a similar situation Atari was in during the crash of the early 1980s.  Out of nowhere they post large losses, and that causes the bottom to fall out of the videogame business.  Atari retrenches.  I wonder what happens to the videogame business if, in 2009, Sony sudden announces they are out of the videogame business.  That is a megaton I am not sure anyone here can fathom, nor the fallout.