I think ultimately the consumers will decide when Sony has to cut the price.
If the system is bombing in every territory come summer time, I don't see how Sony would have much of a choice.
It will be interesting what happens when iPad 3/iPhone 5 launch later in the year too, because I think both of those devices will be the "hot" portable entertainment devices to own and they are going to get all the spotlight/media hype/etc.
Nintendo should be able to weather the storm because they have a few cards to play yet ... a decent price point (sub-$170) and a solid lineup of software coming ... Paper Mario, Kid Icarus Uprising, Kingdom Hearts, NSMB 3D, maybe Monster Hunter 4 for Japan. Plus there probably will be a 3DS revision in the next fiscal year.







