Don't forget Sony is king in entering new markets first.

At this time, I think that a portable system like PSP has much better selling potential and makes more sense in terms of profits than releasing the highly expensive PS4 or even PS3.

This might sound strange but the fact that PSP's security has been compromised might make the system a huge hit in China. Furthermore, I believe that the PSP is being sold for a profit right now, which means that Sony does not have to rely on software sales or subscription to expensive services to make profit but it simply has to advertise and sell the hardware. The PSP also has a video out cable so that people can plug it into the TV if that is what they want, it is relatively powerful for emulation and multimedia purposes, and it is portable so immediate access to power or a TV is not necessary to play, and did I mention it is inexpensive!

Sony should start with PS2 and PSP there... cheap, profitable and hacked to hell and back... make a market for themselves that could entice them to buy other Sony products... Maybe even release the 5 plats still available (in phases) and put the flag there.

I already saw the article about the joint venture.

PS3 is dominating.

WW... the title isn't PS3 to start dominating in China because of release... was to dominate WW after lauching in China... you may think it's fallacial thinking, but the title is worded that way.

I thought about including the PS2 as well. But I believe it was discontinued recently, and so I think that it might be better for them to focus on the PSP rather than restarting PS2 production (which can be quite costly). 

As for the using Playstation as a gateway brand to other Sony products, that is actually an excellent strategy that certainly worked for Apple. Apple started in China and India by heavily marketing the inexpensive iPods (their least expensive consumer electronics line similar to Playstation), and then they focused on iPhone, iPad, and Mac. Apple now has fairly decent position with its iPhones and Macs in China, it is not a billion people, but it is certainly a lot more people than they ever had when they were only marketing Macs and briefly iPhones as gateway devices; a similar strategy could work for Sony as well.

Being from Turkish quite possible...

But is undeniable that even if just 30% gain more than 700 USD that is 300M market... so having a strong brand in India and China is a good long time vision. I don't think it's impossible to gain a 10M market share in each of those countries.

Companies must adequate their goals and approach depending on the country.

PS2 may not be to expensive to restart... they could use the molds and everything else sending it to Foxconn probably would still make them profit. Or do some R&D and do a PStwo ultra slim and cheap to sell in China and India...

Depends on market... PS make in China could have less strugle than made on Japan. What is the problem with hyperbole? Even Bill Gates said he expected Xbox original to sell 1 billion (I still struggle to find the sourcer, maybe it was just miss interpretation on the Brazilian newspaper part).