@Troll_Whisperer

I feel I presented both positions fairly well in my original post. It isn't as if I have discounted the prospect of a price reduction at retail. For it to be effective though I do think Sony would probably fall back into loss lead model for each hardware unit sold. Perhaps for as much as a year. In either case Sony will be losing money on the units. While it is obvious that selling at a loss is better then having the liquidity locked up in unsold merchandize. They are still both bad for Sony.

Your sentiment about manufacturing is somewhat oversimplified. Sony is more of a sprinter as far as such things are concerned. Sony wants to reach maximum capacity as far as manufacturing is concerned, and their entire methodology is based around that model. It is a process that only works in one direction really. I have thought about explaining the minutia, but I doubt you would be terribly interested. Suffice it to say driving down their production from maximum capacity would sacrifice certain efficiencies. Which would result in less being spent overall, but more spent on each individual unit. Sony could very much end up back at the beginning.

Yes Sony could curtail production, but it would have a negative impact on cost cutting. Which is after all the long term goal. That is where the real money could be found, and where price competitiveness really comes from. It really should be the last resort for Sony, and if they did that. They might just be better off ceasing production, and if Sony is loss leading at the point. They really should kill the product off at the point. There isn't a good reason that manufacturing costs should be going up if you are already losing money.

Anyway as far as price cuts are concerned. If they come I think Sony will be dragged into doing them kicking, and screaming all of the way. I know it is a veritable messiah on these forums, but if Sony repeats the PS3 again with their portable. That cements a dangerous trend in the minds of consumers. How long will it be before the early adopters shun up front buying altogether. Since they know Sony will drop the price by a huge margin within the first six months. Which is just another way the Vita could murder the PS4.

If you replaced Sony with Nintendo in the OP it would make more sense because all Nintendo does is games. Sony however does everything and has more than just the Vita potentially ruining the Orbis. Money lost on Vita is nothing compared to TVs and such. As really the only part of Sony making money, they will have no problem finding funds if they need to.

It's just that people spell doom and make too much drama nowadays. Vita sales could be better but they are still fine, it's not Xbox 360-like in Japan, it's not Sega-console like, it's not WonderSwan-like numbers. It's just a bit slow but it's not plummeting.

It's Sony and it will back its platform up and support it. PS3 was so doomed when it launched yet now it's market leader for the whole year. People need to give it some time.

I dont get what is so positive about Vita selling as much as the Psp in recent weeks.  

is there a TLDR version?

read the OP: ummmm yeah, there's no way your that dense.... please tell me this is a joke

@Sensei

I don't think I am being overly dramatic. This is the same analysis I presented for the PS3 earlier in the generation. In that analysis I came to the conclusion that the console would either fail, or Sony would have to drastically increase its loss leading position on the hardware. I was right in the latter, and I am still confident if it had been the prior the PS3 would have stagnated right out of the market. To be honest I am not sure given the current financial position of Sony that it was the right call. Had the company not incurred those losses there is a good chance that in at least one of the past five years the company may have posted a real profit.

I know people want to place a lot of faith in new management, but as far as I see things that kind of thinking is just not pragmatic enough. It would have some merit if we were talking about a new CEO that had a real laundry list of past success stories. Instead what Sony has now is a inside man who has a mixed track record. Sure it could end up being just what the patient needed, but it is really likely that the situation will stay the same or get worse.

I know some were down on Stringer, but I also think that most who are down on him. Weren't bothered to really listen to what he was saying at the start of his tenure, and throughout his tenure for that matter. What he found in Sony was a cross wired mess of a company. After all how easy is it to back out of a particularly bad enterprise if it is interconnected with everything else. I mean think of it this way.

Stringer was a man with a massive amount of experience, and not unsubstantial success. Couldn't unravel the big twisted knot that was Sony's product lines. Then what chance does someone with far less of both have. I know there are some who want to believe wholeheartedly that Sony will fully back anything that leaves the factory floor, but at some point Sony is probably going to need to show something that people here aren't going to like, and that is the courage to cut losses even if that means losing some face.

Are you asking which one will do better or worst?
I think Ps4 has little chance to outsell Nintendos and Msofts hw next gen...Vita will pick up eventually since it only has one rival (smartphones are not hurting very much the hh market, thats a myth imo..)
So PS4

can anything lose against the Vita? I mean come on this device sells like fresh shit. But Sony could fuck the PS4 launch up big times, if they do the same the did with PS3. I know people are saying the PS3 did good, and yes it did later on. But it had a much bigger fanbase with the PS2 as its predecessor. Sony is in a tough situation, a fight for survival I would call it.

What about the best selling gaming device in the world? 3DS?

"Vita will pick up eventually since it only has one rival"
thats the 3DS
smartphones are not even a rival ;)