If the desperate moves of the new 40GB SKU and price cuts don't pay off, Sony will know its essentially over, they can continue on if they like, but pressure from Stock Holders and Company Executives will probably pressure the console to discontinue dooming the PSP with it. They also have to rationalize that Blu-Ray hurts the PS3 (Price) and the PS3 hurts Blu-Ray (No one wants to associate their format with the failing product of its market).
This of course, is all speculatory, but even if the PS3 does sell loads over the holidays, if it ends up losing even more money than before it won't be much of a victory. Mind you the PS3 is arguably beyond the point of ever turning a profit for the company in its life time regardless. Lair, Heavenly Sword, Ratchet and Clank, Eye of Judgment... All underperformed (or flopped) and yet all were suppossed to be lightning in a bottle. This Holiday Season will make or break the PS3.
I predict the 360 will dominate this holiday season building up immense momentum for the next year. The Wii will dominate in Hardware but not Software sales these Holidays and will build itself up over the next year just like the 360 did the last.
To those defending the PS3, your choice is a valid one, but stop comparing the PS3 to the PS2 like there is any hope to be offered from that avenue. The only thing, and I mean THE ONLY THING, identicle between the two of them in what they are is that Sony made them. End of discussion.
