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windbane said:
Reports of Sony's demise are greatly exaggerated, just like the PSP is a "failure."
Subsidizing people's entertainment is not a mark of success.  The PSP has so far earned either a small loss or small profit for Sony, which isn't too great for the "Walkman of the 21st Century" that was supposed to destroy Nintendo's handheld dominance the way the PS1 did with Nintendo's console dominance (that's mainly why some call it a failure, it hasn't lived up to Sony's boasts and expectations).  With a $30 drop in price any profit they could have earned with it will be shot for a year or so, that's assuming sales of units and video games pick up as much as expected.  They are expected to redesign it soon and Nintendo will likely drop the price of the DS also if the PSP starts doing too well all of which will further eat into profits.  At the moment the PSP is not a failure but neither is it a success.

If you think Sony's "demise is exaggerated" then why do you think so?  I don't think it's 100% certain but I do think Sony is on its way to said demise for the variety of reasons I listed.  Do you have any reasons for why Sony breaking the bank and not selling as many units as it expected (especially since the PS3 seems to have a 100million+ install base built into its business plan) is not a bad thing?  I don't mean reasons like blind fanboy faith or simple the world is as it always shall be attitude, or trust that the Sony big gun AAA titles will save the day, or that someday in the distant future maybe half of Americans will have HD TV's and be able to benefit from the PS3's extra capabilities, or that 3rd party devs will suddenly decide they don't like money and would rather spend their resources maximizing Cell for the greater good of Sony.  Sorry if I precluded your reasons there, those are the most fatuous excuses I've heard so far for why Sony isn't in a bad spot.  If you do have good reasons I would like to hear them, no one is perfect and I may be missing something after all.