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SCE would go bankrupt.

Now, assuming Sony had massive hoards of money and the PS3 cost $150 to make, because it's more fun:

-The PS3 would begin to handily destroy the 360 in sales every week.
-The PS360 gap would close, probably by the end of 2009.
-The PS3 would compete with the Wii in sales.
-PS2 sales would go down significantly
-X360 sales would go down significantly
-PS3 sales would go up significantly



(Former) Lead Moderator and (Eternal) VGC Detective