Forbes: Sony is Screwed...Is this article accurate?

[HappySqurriel]

Jordahn said:

ZenfoldorVGI said:
This is big news for Sony. It will without a doubt affect the gaming industry, and PS3 owners directly. We'll just have to wait and see exactly how this plays out. Games could be dropped. I doubt Sony is about to start any huge, expensive first party games anytime soon.

 

If there is any industry that has defied a slowing economy that would be the entertainment industry, including console gaming.  SONY's gaming division would be the least to be effected since PSP and PS3 development are still beneficial to the company while PS3 demand has increased.  Also, the PS3 has contributed to Blu-ray's success so whatever SONY can do to promote the PS3 also promotes Blu-ray.  SONY also announced the SOE will be working with the PS3.  And fortunately, the loss per PS3 sold has been reduced to around $50 USD.  We can make speculations, but these fact would make a logical conclusion that the gaming division would be one of those least effected at the moment because it's showing tangable progress.

Besides God of War, Daxter and Ratchet and Clank I'm not too sure if Sony's efforts on the PSP have been particularly profitable ...

Sony's goal to return the company to profitability would mean that each division would be expected to reduce expenses and/or increase revenue, as a result SCE could reduce spending on games (by producing less games and less expensive games) and focus on series that sell well.