" It is a FACT that PS3 revenue is down 1.3bn in by far the world's largest market."
Which doesn't matter that much if it's profitable worldwide. Which we don't know. Hence it's meaningless as an analysis.
The fact that PS2 revenue is dropping is not a surprise at all, the console is more than 10 year old. It's a surprise to nobody, I doubt Sony is surprised either.
The business model was always to let the PS3 profit take over... which it'll do soon since PS3 sells more and more (breaking news : it even outsold 360 in its own territory last week).
My 2 cents.