gentian: Yes i know however there gaming division is there biggest and I thought that over all they were 2 bill down, HOWEVER It turns out I may be wrong. thanks for the correction I will check my facts.

ERR yes I was talking crap, sorry. games division is its second-biggest and they did make an overall profit.

don't try to argue with larry, it doesn't work.

Frankly I'm going to ignore Pachter since he is frequently wrong and there are people here whose opinion I trust more than him.  He predicted World of Warcraft would have less than a million subscribers after all(it's at, what, 8 million?)  I wonder if he'll be right about the price drop at E3 though.  Honestly, nothing that Sony does aside from having their sales pick up would surprise me anymore.

I don't see the price drop to $500 saving them.  For one, nobody bought the $500 PS3, so why would they go out in mass numbers to buy one that's a little more powerful for the same price?  Also, I keep saying that if the PS3 drops its price then the 360 will follow.  The Wii will follow at one point or another as well.  With Nintendo forecasting 20 million Wiis sold overall by next year, I suspect they will have to drop their price as well

Oh, and yes, Sony did make a profit despite their game division losing over 2 billion dollars, but just imagine the profit they would have made if not for their game division.  Although I'm not saying this will happen, I wouldn't rule out the possibility that Sony will drop out of the console race altogether.  It's not like the PS2 made a huge profit and they can make money in a lot of other places.  If they're just losing money then why continue it? 

@deadhorse: because nintendo once backstabbed sony by cooperating with philips instead of with them. Now they want their revenge, so they won't stop Playstation until nintendo DIES. This all thanks to Ken Kutaragi who convinced sony to try and take down Nintendo. What almost happened (well, if you only check sales and not profit). ;)