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I wonder, how much Money did Nintendo make last Gen? I don't see PS3 being profitable if they aren't the market leader, especially since they completely dominated last gen and make "relatively" little profits. You will see very few 3rd party exclusives. Most will also be on Wii and mostly 360. Sony still has a chance tho, but they have to address the price. No matter how good a deal it is, bottom line is the price is too much to pay for most people. In some areas the cost is more than your monthly rent. I doubt that Sony can ever catch Nintendo. People seem to think that PS3 can start to dominate in 2009, but by then they could be 20M or more behind and that is too much of a gap to ever recover from. They do have a chance to take second. 360 has stalled around 10M so Sony can close the gap if they can lower the price. Since 360 already has more games, lower price, better online, Halo, and most games will be on both systems, and same powerful tech Sony has to do something and price is the only thing they can tweak.