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There's a bunch of stuff Sony could do to help the PS3, like buying exclusives, another price drop, releasing a slim model etc. Sony could do that stuff without much trouble, seeing as how they're such a big company and everything.

The thing is, I don't think they want to. Sony is a very big corporation, and the gaming division is responsible to someone higher up. It would seem that someone has made it clear to Kaz and his crew that losing even more money is not an option, and making the console profitable is more important than widening the userbase.

Does that mean they're giving up? I would say no, they're just coming back to reality where consoles have to make money, and running a business like the PS3 so far is simply unacceptable.

This is why Sony's recent forecast is "only" 10 million, and why we won't be seeing a price cut anytime soon. Hopefully first party games like God of War 3 and whatever Team ICO is working on won't be affected.