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In terms of money loss, Sony has basically thrown away all the profits earned from the PS2 and part of the PS1. The PS3 has not only cost them numerous franchises and exclusives, but has set them so far back in terms of the gaming market that if it weren't for the few franchises they have left, they might as well be starting over from scratch.

Even if the PS3 was to emerge #1 this generation, it would take the remainder of its life as well as most of the PS4's to get back to where Sony's Gaming Division was before launching the PS3.

Sony fucked up, The PS3 was over engineered and unprepaired for developers while Blu-Ray was too expensive for the consumer, they know this now and are playing catch up while feverishly trying to handle damage control. Let's just hope this experience will make them a little wiser in their future endeavors.

Sony's best strategy now is not to plan on a PSP2 or PS4, but rather to focus on the PSP and PS3 as long term investments (two generaiton consoles). The PS3 is already the standard of what graphics will be next gen for home consoles and the PSP already the standard of what graphics will be on the DS' successor. By pushing graphics further or for that matter pushing successors to their current products, they only risk hurting themselves. If they could turn a long term console idea (like a console lasting two generations) that would give them a major advantage over the competitors when they launch their next consoles for the next gneeration because the PS3 and PSP will already have large user bases and a cheaper price tag.