Is Sony at crossroads with Playstation?

[Joelcool7]

Firstly PS4 will not be a repeat of PS3, Sony will launch PS4 at a profit or break even it will not be the huge graphical leap that PS3 was over PS2. Sony will be sure to make a profit at all costs. In fact Sony is expanding the PlayStation brand for the sole purpose of increasing profits. All these PlayStation phones and tablets are meant to ensure that Sony Computer Entertainment manages to not only get back in the black but remain there.

If PS4 were to fail as badly as PS3 I do not think Sony would abandon PlayStation. Sony has taken consistent losses on their TV division and has done so almost a decade. Yet until recently Sony has remained supportive and kept the television brand around despite it leaking money. I think if PS5 launched and was the third console in a row to bleed money in the fashion PS3 did. Then Sony will consider selling the PlayStation brand. They won't likely dissolve PlayStation they would likely try to sell the brand and or make it independent.

So if Sony bailed which they won't likely due unless both PS4 and PS5 bomb as hard as PS3. Then they will likely go independent splitting PlayStation off from Sony. This would likely call for third parties to invest and save PlayStation by buying large parts of the company. The PlayStation brand would likely continue with other companies at the helm. Much in the way Atari split up prior to its ultimate demise.

Also I don't think Sony minds Microsoft taking market share, Microsoft lost over 2-billion in profits with 360. Sony did indeed lose more but if Microsoft continues to lose so much money it is a game of chicken. Will Microsoft pull out if if they continue these losses or will Sony do so before they have a chance?

I don't think Microsoft will leave the home console market until the fourth generation Xbox. If Nex-Box fails to generate a profit and Sony makes a major comeback then Microsoft may pull out. However if Sony continues to struggle for its survival in the games industry I think Microsoft will remain in the industry until Sony's SCE is completely dead. Microsoft will stay for the kill if at all possible, destroying Sony's capabilities to enter the personal computer market is exactly why Microsoft entered the industry to begin with. Xbox was never about turning a profit, it was a move meant to protect Microsoft's biggest business (Windows and PC). Microsoft knew Sony was aiming at turning the PlayStation into a PC, with Sony's own OS and essentially with their strong software and support they could have dealt a big blow to Microsoft. It was in Microsoft's best interest to cripple Sony before they could enter.

Essentially Microsoft and Sony are playing a game of chicken. Microsoft is willing to take heavy losses if it crushes Sony, Sony is willing to sustain heavy losses simply to maintain its brand integrity and in the end keep PlayStation alive. Unlike Sony's television industry the PlayStation brand has only been losing money steadily one generation. The company is going to hang on as long as physically possible!