Ok on the fair note side I'll give an actual opinion :P

Sony and Entertainment Checklist.

Movie studios? Check.

Music studios? Check.

Hardware production? Check.

Internal Game developement Studios? Double Check.

And you want them OUT of the home entertainment business o.O?

Look heres what it all boils down to, you post this acting like the people who actually own PS3's feel offended. I've never met anyone with a PS3 that regrets the purchase. It's all typical bullshit that the "other fanboys" attempt to throw in our faces when we plain and simply don't give a rat's ass :P If the numbers aren't working out for Sony, let them do something about it.

My friends and I paid $500 for our PS3, and I'm not falsifying numbers, but we haven't turned it off for the last 3 months. Wether it's a blu-ray movie, video games, youtube videos, or folding at home the console has seen more than it's fair share of use.  

I don't know which console you prefer, but if you really feel that their treating you better as a consumer, then please continue to support them. I chose the PS3 and I haven't regretted it for a moment.  

I agree with TC abit, sure the reason he gave were not the strongest. But where are Sony gonna get the money for the ps4?
If the next playstation performs like the ps3 it will be their last, I have no doubt of this.
I know Nintendo went from 2 gens as number one (nes/snes) than their user base halfed with n64 and halfed again with GC. But Nintendo never lost money, they are some smart cats and manage to turn massive profits no matter what. Also the fact that their 1st party games are the some the best of each gen.
Sony dont have this, the exclusive 1 st party games they make coat them a heap because they just buy the dev where as Nintendo are the devs.
They are business and if that business is costing them money, they will just drop it and go back to making tvs and such.

ignoring the first couple of points cause i don't care about them...

...if the console is "meant for a crowd of people who are very likely to have a hdtv" it was a stupid decision because hdtv adoption rate is currently about 25%, even less at the time of launch, which makes for an extremely limited audience especially considering the 360 is competing for the same audience.

there are hardly any bd burners because they cost a ridiculous amount of money, they average about $800.  Once blu ray is mainstream the cost will come down and burning a bd disc will be commonplace.  piracy not averted.

listen, go watch tv until you see a few ps3 commercials.  http://youtube.com/watch?v=VrpfxvQKp_M  Sony spends as much time advertising blu ray movies as they do advertising the gaming capabilities.  Like I said, Sony is leveraging their playstation brand to develop their blu-ray brand.

This leveraging has hurt playstation in 2 ways that I can think of.  Firstly, it was blu ray that directly lead to Noobie's second point "2. They have too high cost and i don't see them lowering it either.".   Secondly, Sony can't seem to decide on an identity for the ps3 in marketing terms.  They keep flip flopping between a gaming machine and a multimedia center.

Yes, from a tech point of view blu ray has some great advantages.  But as a movie player blu ray is a few years away from grabbing a significant audience (bd without HDTV equals pointless) and it dramatically raised the cost.  Which btw - America is going into a recession and that will make the price point for the ps3 even worse.