I honestly do not see Sony continuing on as a console manufacturer. This generation has highlighted once again how high risk console manufacturing can be, and less importantly how little profit is to be made. Especially in the face of stiff competition. What Sony needs or wants is low risk with high yield. Preferably with a fast return so they can recoup investments quickly. Rather then delayed or deferred results draining their liquidity.
More pragmatic is the competition. Firstly having greater capital reserves. Second having greater consumer momentum. Third having stronger partnerships. Finally are willing to win whatever the cost. Microsoft and Nintendo are getting stronger, and have more incentive then ever to push Sony out of the market place. Like it or not Sony is really at the mercy of the competition here.
I think Sony will probably move towards third party development status, and perhaps an online gaming hub. Which would probably give them a better bargaining position. Both are high return with low risk. Which is what Sony will need in the coming years. Especially since the competition is not very apt to rest on their laurels. Sony is going to have another generation thrust upon them long before they are ready.
I am just not seeing how Sony will be profitable in this space. Given the inherent risks, and the competition it faces. Software is where they need to be. They would be far more financially successful.
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