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I'm Bodhesatva said:

I tend to agree with MakingMusic on this, at least to a degree. The clear problem for Sony is hardware. Software may have some issues, but the 3.5 billion dollars lost is not from Motorstorm or LittleBigPlanet.

So if SCE were to be cut at all, I'd guess it would be hardware: however, this isn't a time when hardware can be "cut," exactly. The most extreme solution would be to not fund a PS4, but even that wouldn't stop hardware production right now, on this day. They'd still be shipping PS3s, they just wouldn't be coming out with a successor.

In other words, it's entirely possible that Sony will decide to cut something gaming related, but the obvious things to cut (hardware R&D) won't really show that it's been cut for years. I expect softwhttp://www.vgchartz.com/forum/thread.php?id=55541&page=1are production to continue unabated, and I see little reason to cut products for which all R&D has already been completed (i.e. PSP, PS3).

I'm basicaly just watching as this develops and your hypothesis is one I'm looking at. I don't think there is a reason for the PS3 to be discontinued. After backing the PS3 during it's unprofitable years, there is no reason to throw it out the door when it's just about to be profitable. They also have a lot of money invested in games that would go to waste if it was discontinued. So I don't see this is a possibility at all.

What makes me think of your hypothesis is this: http://www.vgchartz.com/forum/thread.php?id=55541&page=1

Could Sony be moving to software in the gaming business? Will there be a PS4? I'm quite curious about this. I'll just wait and see now...

EDIT: You had a link there to the same post I linked to. I guess this is what I get for not clicking on it before... bah... not editing my post... but I basically just said the same thing as you. :P