Some of you have very short memories. This was a serious possibility, its only by Sony throwing five billion dollars at the problem that they turned the fortunes around. If this article was before the 40GB model was released then it was on the money that things could have gone downhill.
As it happens Sony went on a cost cutting spree to stop the profits bleed and so they could aggressively price cut. They pushed exclusives to try and differentiate the PS3 from the 360. They also seemed to change their marketing strategy. All in all the article is wrong with hindsight but at the time it was a fair statement, Sony have done well to make the PS3 relevant and likely in 2nd place at the end of the gen.







