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legend92(3) said:

I personally believe that if sales of the PS3 and PSP dont start to increase soon that this could be Sony's last generation. This Gen has cost them billions of dollars and there just starting to make little money from the sales of software but i don't think enough to justify them making another console. It's whatever is in the best interest of Sony so if there not profitable I don't see them trying again.

So, "Nintendo had bad sales for two generations and now look where they are" But they never lost money they were still profitable the whole time.

What do you think will they or wont they give up?

If you honestly think Sony is just going to up and pull an Eric Cartman ("Screw you guys, we're going home!"), then you don't understand a thing about Sony's long-term strategy, or company history. The games are a given, almost to the point of being an afterthought. Sony's investment will pay off long term in downloadable movie rentals, BluRay sales, and microtransactions over the PSN.

Sony's biggest competitors this gen are not Microsoft or Nintendo, they're Netflix and Apple. Losing the DLC battle to Netflix and Apple will cost Sony tens of billions of dollars in future potential revenue streams.

Let me put it this way: Sony can lose a console war to Microsoft and/or Nintendo and keep chuggin' along. If Sony ever loses relevence as a preeminent consumer electronics company, they're done. A few hundred million Xboxes and Wiis aren't a problem. I few hundred million iPhones, iPods, and cheap Korean made flat panel TVs are.