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reverie said:
@albionus
You're absolutely right, though one thing should not be forgotten: Luckily for Sony they can make another cool billion on the PS2 before the PS3 has to start lifting heavy in earnest. You can find evidence for that in the low price of the PS3 in Japan: It's the only place where the PS2 has started to run out of steam so far.

That is something I wasn't thinking about, the PS2 will probably move around 4-5 million units and 50 million+ games this year.  Although I wonder to what extent that is accounted for in Sony's loss expectation for this year.  Maybe they are under estimating the PS2's sales since many people will just stick with their PS2 instead of buying a PS3 but even so I would think that would buy them maybe an extra quarter to get the PS3 in shape.