Sony has some real problems here. First of all, I still maintain that Blu-Ray was a huge mistake. Blu-Ray is not going to penetrate the market the way DVD did. Ever. Apple and Amazon and Netflix and your cable companies will be providing affordable HD movies on demand whenever you want, whatever you want at an affordable price point within the next five years. I just don't think they are going to make enough money back - remember they are just a piece of the Blu-Ray group.
Also, they are also facing the prospects of just not selling software the way they did with PS2. They are selling more now than they did, surely, but they aren't selling crazy total numbers, and that's how they are going to make their money back. If they don't get that attach rate boosted, it could be a long generation for them indeed.
Remember that if they take 5 years to make this money back, they will already be in or will be nearing research and development of the PS4 by then, which is then a few billion more in costs.
Can't we all just get along and play our games in peace?
