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Sony is still alive and well. They are fighting a much bigger battle than Microsoft on the piracy front and holding off selling too many consoles until they are profitable. Meanwhile they are using PS3 to bring down blu-ray costs and push a format foreward. IMHO they should use the freshly integrated gaming+vaio devision to bring the battle to the operating system war that Microsoft has been winning for a long time. Healthy competition would be great for everyone! (Except Microsoft)