NJ5 said:
We wouldn't want that to happen, would we?
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Depends on the short term costs for Sony, if they also sell way more Bravia HDTVs, more Blu-Ray movies, HD audio equipment, etc and does not completely stall PS2 hardware and software sales it would IMO be good.
But I think the PS3 should not sell too much until the hardware costs are brought down and mass appealing games like Gran Turismo 5 or Final Fantasy XIII are available. The software profits can then compensate investment costs.