Sony may be an old company, but the videogame market chews console makers up and spits them out like nothing. Of the dozens and dozens of companies to ever make consoles, only 3 have continued until this day, only 2 of which have ever earned 1 red cent from the business. Big companies, little upstarts, toymakers, consumer electronics companies, software companies... All thinking they knew what they were doing, just getting torn apart by the home console market... Sony took a MASSIVE gamble with PS3. It is not yet clear if it will pay off. Yes, it does just come down to the games, both the "killer apps" and most importantly the size of the library, which is why Sony should be worried that their two competitors are both quickly catching up on both fronts, while having less of a cost:value hurdle to get over, and being better prepared to further improve that ratio with price cuts. This market is momentum based, and right now Sony seem to be losing the momentum.
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.
