Sony is in big trouble, what should they do?

[DirtyP2002]

Hey guys,

Sony is in big trouble right now and I want the VGC-community to decide what they should focus on.

The PS3 has its problems in the western market. It gets outsold on a weekly bases by the 2 main competitors in Europe and in North America. They had one major release this year (in the west), but it only helped to put the PS3 past the Xbox360 for one single week, the Wii is still out of reach. We do not know if Sony is still losing money with the PS3, but the financial report is coming soon. Nintendo reported that the profit was 42% smaller than it was during the same timeframe last year, so I doubt Sony will improve from last years numbers when even Big N wasn't able to do so.

The PSP is in Big Trouble. It is getting outsold 4.5 by the Nintendo DS in North America and 3.5:1 in Europe. The software sales are extremly low, because of piracy.

In a word: Sony is not in a great position as a company.

What should they do? Here are some thoughts:

• Price-Cut for the PS3 to stimulate demand. PS3 could get more marketshare, but the financial situation would be even smaller. Maybe software-sales could help to get more revenue.
• Price-Cut for the PSP to stimulate demand. Same thing as for the PS3 but software-sales won't increase, because of piracy. So this won't help Sony much.
• PSP 2. Okay, this would mean the PSP is dead, but Sony could start all over again and try to avoid piracy from the start. Digital Distribution could be the key.

So what do you think? What should Sony do? should they focus on PS3 or PSP / marketshare or profit? Please keep in mind, that Sony forecasted a loss of $1.3 billion for this year. So there are limited resources.

Please try to be reasonable!