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@dodece, points taken. I find Sony to be in the most difficult position regarding home console systems. Sony still easily has an opportunity to take back the market. I believe if they release a system that is comparable to Microsoft's next generation in specs and price then they will at least surpass Microsoft. Microsoft is only leading them because of a head start and the abysmal PS3 launch. It almost seems like Sony is at the point of which GM was (just not as bad). GM used to be the sales leader but then they got sloppy, relied on gas guzzling SUV/trucks and their lineup basically went to shit. They had to do major revamping just to get their product in check with consumers. Sony needs to take a hard look at itself and make some changes. I am sure they are a little less cocky now than they were right before the PS3.

@rainbird, looks like they are actually following a decent business plan in regards to Vita.  They have learned their lessons and it looks like they have gotten their hardware cost in line with the price they are selling it for.  It isn't terrible to sell a system at a loss especially if you become market leader.  However, you can't sell your system at a 100-150 loss and have the price range still out of consumers.  Looks like Sony is getting smarter which means more competition.