The one unanswered question is how prepared is Sony to face competition from Microsoft for key exclusive games ...
When your system is as popular as the PS2 you don't have to do much to get the lion's share of exclusive games; when you are a trailing system, exclusive software comes from a monetary transfer of some sort. Now, Sony is losing a ton of money on PS3 hardware which they are probably not recovering from the sales of PS3 games, the PSP has awful software sales and if Sony plans to release a follow up on a standard 5 to 6 year cycle will have a massive R&D budget in the near future, and the PS2's software sales are dropping very quickly. If Microsoft started throwing around money tomorow could Sony match their offers?
If you're expecting a profit of $20 Million by releasing a port of and XBox 360 game to the PS3 would you be willing to kill the port for $25 to $50 Million?
