Worse than most people would admit. Every one of their divisions is losing money, especially gaming. They're losing $40 per unit on a last-place-and-continuing-to-fall-behind console for which the evidence of any kind of price drop is sketchy and based on hearsay. Every single decision they've made regarding the PS3 has been flat out retarded: removing BC, using Blu-Ray, removing USB ports, Home, etc. If there even is a PS3 slim, it'll be even more expensive than the phat, and don't even get me started on the PSP Go. Speaking of which, if getting their ass handed to them in consoles isn't bad enough, the PSP is nowhere near as popular or prevalent as the DS and its relevance will probably drop even more once the XBox handheld comes out.
So, yeah, it's in a bit of a pickle.
