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NJ5 said:

While andrewpeirce's suggestion is ridiculous, it would probably have a higher chance of success than their current efforts with the PS3.

 


But how would Sony justify billions in losses to investors due to investment in Cell, Blu Ray and PS3 hardware production?  Right now, they can point to the future and say, "we'll put the Cell in everything, win the next gen HD battle, and make huge profits in our game division over years 3-10 with the PS3."

It doesn't have to be true, it just has to be justification.  Whether or not the price cuts would be more beneficial in other areas depend on whether or not you believe the next gen HD war is winnable on short order and whether the Cell will still be a cash cow for Sony after celling their production facilites.