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...they have their cash reserves sitting in product...

Product which decreases in value faster than cash. 

Products which they aren't able to sell due to the economic downturn and by the time they can sell them, they'll only get a fraction of what they were originally worth.

Products which in the meantime they'll have to warehouse or otherwise store which costs rent (whether they own the buildings or not there are costs with storing and moving product).

What a phenomenally bad idea if this is, in fact, their plan.  Which, btw, I don't believe it is.  I believe their fondest wish is to convert that product for cash and stop the unnecessary hemorraging.

I should state: I don't think the PS3's going anywhere (ie, it won't disappear), neither do I think it'll be 2nd place any time soon if at all, and ultimately nor do I care.

The only ones who care are those who somehow attach some kind of 'I'm a PS3' sticker to their chest and think that if the PS3 wins, they win. 

I'm seriously considering adding a "PS3 is the future: D_3_L_U_D_3_D" tag or something.