Why is it diminished revenue? I thought it has improved since last quarter.

Hardware sales are down this year for all 3 console manufacturers. No surprise there.

But I'm somewhat surprised that software sales are up. If I had to bet my money, I would say it has something to do with games being sold at discounted prices for PS+ subscribers.

Agreed.

Increasing installed base is a factor too. 

i know this is off topic, but who is shipping more these past couple of quarters, DS or PS2?

Seems like PS2 is the last three quarter... anyway Sony expect to ship 3 million PS2 in FY and Nintendo 2.5m DS in the same time frame.

so basically the DS wont outsell the PS2

It probably is and the 3G Vita defiantly is. Factor in all the other expenses however that are not in the package and yeah as a whole it is bleeding money from Sony.

The PS3 will be the No 1 selling console of 2012. With no AAA titles or a million selling exclusive in sight, this is both impressive (for Sony) and troubling for gaming.

It begs the question, what the fuck are people buying when they buy a PS3??? Answer is Call of Duty and Fifa.

That is the troubling part and it leads me to believe that the PS3 will become the best selling HD console this gen, by being the go to console for casual gamers. It explains the much lower attach rate (which by now should no be an issue because of neck and neck sales). It will take a long time but the PS3 will eventually hit PS2 status.

I believe this trend will continue into the next generation. Sony games budgets go up, but sales wont. PS4 will be inundated with shovelware but console sales will be in line with the Wii and PS2.

Next generation console cycle will mirror both this gen and the previous. PS4 will be the new PS2. Xbox 720 remains the same as 360. WiiU will be the gamecube (failure).