It needs to be asked. 

I just wrote my analysis for this week's American data..and I can't help but wonder how much lower PS3 can get before starting to pick up again in late summer/fall.  If it kept declining at this rate (3-4k) in the Americas for another 6 weeks (it won't) sales would be 0.

Sales in Japan and Europe will in all likelihood be down this week as well.  I'm thinking 8k Japan, 18k Europe/Others, and the 17k already posted for the Americas - a grand total of 43,000 for the entire week - the lowest sales of any current console (Wii,360,PS3) to date.

Sales under 35,000/week are terrifying to me, but I think PS3 may dip into that zone and live to tell about it.  Think of it this way - even Gamecube - which is not even produced anymore - probably does 5 or 6k per week - PS3 should do at least 10x that at all times - regardless of what it costs.

The declining sales might push sony into dropping the price for the PS3 despite the fact that they will be losing money on the hardware, especially since the decline in sales has been pretty significant these last few weeks. If sales and therefore production drops, it would imply that the cost to manufacture would increase, not decrease, and a price drop would stimulate further sales and therefore decreases in manufacturing price.

Well it can go down to 0, that is the untimate low. Sony has a big problem. Now compared to the Gamecube Sony has an advantage and a dissadvantage.

1) Sony has a better relationship with 3rd parties going in to this gen, so they may stick it out for longer than they did for the Gamecube. But ultimately money talks and the devs wont put games on PS3 if it isnt selling.

2) Sony has a much weaker 1st/2nd party lineup. Nintendo made the Gamecube profitable just on their own software, Sony cant do that.

The question is how long will it take for Sony to realize that people wont buy 5M PS3s w/o any games... They need a massive price cut now, like $250 and they need some AAA games which they wont have for a while no matter what.

I think the biggest threat to Sony is the 360 though. The Wii will outsell both, but it is the 360 that will kill the PS3. They are basically the same powerwise and MS has them beat on price, games, and cash reserves. Sony may well bow out of this gen. Even while dominating with the PS2 they made little profit.

At some point they have to figure if it is worth it or not to keep a smaller piece of the market.

I wonder what would if tomorrow it was announced that MGS4 and FF13 would be on the 360.

They need at least a $100 price cut by the holidays to survive this generation. I really hope they do it because I don't want this to go back to being a 2 system market, but they seem to be doing so many stupid things this generation it's getting insane. They aren't offering the benefits 3rd parties need to be convinced to keep their games exclusive and they are trying to sell a game system for the cost of the average college student's month and a half of rent. Then they give stupid PR statements that make them look arrogant and give them a horrible public perception and compound that with horrible commercials. Then they get battered with 1 lawsuit after another (first rumble, then the Blu-Ray disc being the latest). I'm really honestly worried about Sony's chances of pulling out of this now.

I would say it will dip to 35k level, but I doubt it will be down their. PS3 fans will unite in a new group "Dont let the PS3 levels fall anymore". They will purchase PS3's every week, so that the number does not dip that low. Then, they can return all of those consoles when games like NGS and Lair are released, which should boost sales for the PS3, if just for 2 weeks each.

when was the last good game release.... March ? NGS and Folksoul are being relesed in first half of june in Japan.

I think you meant June, Blue3. NGS comes out June 14th and Folks Soul comes out June 21st. I can't believe it has dipped this low already. The (exclusive) game drought is horrific.

Yes, the software selection on the PS3 is pitiful, and im sorry, NGS and Folksoul arent system sellers either

Well, I would say that they could, at least, move an extra 8k units a week