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No Sony can't recoup the losses on the PS3. That is purely a pipe dream. Given the losses up front, and the interest on loans taken out for development and launch. Sony is looking at well over five billion dollars in losses on the machine. Hell it becomes painfully obvious that they cannot as they may be bottoming out the price. To cover those losses Sony would need to maintain its current price point for at least three perhaps even four more years. So that they may reap two hundred dollars from the machine that lost them almost four hundred dollar in the summer of 2007.

This money is for the most part gone. Sony isn't going to be getting it back, and the generation cannot last long enough for Sony to even consider it likely. There will be a new next generation console on the market by the seventh year of the PS3. Whether it be from Microsoft or Nintendo. More to the point the longer this generation lasts. The less hope Sony will have in the upcoming generation, because both Microsoft and Nintendo are bringing in far more money. Money which they will use to keep Sony down.

Sony is in a bad spot. I think they will try in year four, but if they can hold out for one more year. Then they need to move at that point. Linger around till 2012, and they are going to be in for a whole world of hurt. Sony has a real small window. A little early and it will cost them. A little late, and they can kiss their asses goodbye for good.