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RolStoppable said:

You didn't answer my question, because you know I am right. The PSV is causing Sony's gaming unit to lose money. It's not the PS2, PS3 or PSP. It's the PSV.

Selling at a loss (PSV) and failing to reach the same sales performance as a product that is sold at a profit (3DS) is a bigger fail than switching to lossleading after a few months. What this means for Sony is that they have to take an even bigger loss on PSV hardware in order to keep the system relevant. Otherwise third parties will either switch to the 3DS or subscribe to the "smartphones have killed the dedicated handheld" mantra. Without a doubt, Nintendo handled the 3DS poorly. But Sony handled the PSV worse.

It doesn't need a price cut to stay relevant if it gets software. A GTA and GT could help out a lot, AC and COD won't do wonders, but they'll give it a boost. The next Uncharted and obviously a Monster Hunter will also do well, but that's pretty far out. Any new IP could be a surpise hit, there are plenty of Sony's first party studios working on Vita games. Oh and Bioshock will release next year. It seems set for the next year and half, it's sales across that time period will make publishers decide whether or not to publish another Vita title. And if major publishers decide not to, a price cut will be needed. But I guess by the end of 2013 they'll be cutting the price no matter what.