Sony fans have never tasted defeat before, that's also part of the problem.

@ Slums

I was just throwing it out there as in if existing PS3 owners wanted to watch BR movies.

After all there are standalone players on the market.

I can see only two outcomes.

1. Sony will stick with the ps3 and blu-ray and will try to cut prices when possible.

2. Withdraw completely from the video gaming scene.

I don't believe they can just cancel the ps3 without totally destroying their brand name and reputation. They have also invested too much in blu-ray to give up now.

But the can still produce standalone BR players and invest more in the marketing.

Guys, why exactly should Sony cancel the Ps3? Sure they are going to lose money on it but Microsoft lost much more on the original Xbox and I guess the PS3's sales as a Blu-Ray player make somewhat up for it.

I highly doubt they are going to cancel it. That would be much more expensive in the end.

Reask,

Nothing against u but i think all these ps3 news of how its selling or whatever is getting quite ridiculous, also why would Sony give up on ps3 now when they have spent billions of money on it i mean yes they have done a misstake but give up on ps3 i dont think so.

That's true but canceling the PS3 could really shake the consumer confidence in the format so that's why I think it's unlikely.

If you actually believe Sony will leave the gaming industry because of the PS3, you are delusional. Give it a rest. There will be a ps4, a xbox 720 and a Wii Wii next gen, and it is not going to start for at least 5 more years.

Sony will be fine, so will the PS brand and the games will keep coming.

I can not see them terminating the PS3 right now. It would be better to sell the entire division, as that would at least give them the money to survive this downturn as a company instead of just destroying it for nothing. I think more likely if they are really hurting, and they have to decide on a survival strategy regardless of hardware sales, they will just terminate the $399 model for the time being and just leave the $499 Drake's Fortune model out there until next fall or maybe even 2010 when things are looking up. The sales would blow and they would need to cut production to a trickle but it would leave them in the game and perhaps drive a short term small sales spike as some people rush to get the 'cheap' PS3. The install base is large enough that they will still get 3rd party support as long as they keep putting out games of their own. That is not a pretty picture but it will leave them in position to try for next time, if the current situation is killing them.

I agree with Branko2166, the only way Sony would cancel the PS3 is if they decide they don't want to make a PS4. It's possible, but not very likely unless Sony just can't adapt to the recession.

That's why I think Sony will be laying low. Not cutting prices until profitability is achieved. Profitability is the key word, even if it requires them to sell some studios. This will maximize the probability that the higher ups at Sony will let SCE survive until the recession is over.

Now for the other possibility, that they decide not to make a PS4...That's also possible. One thing's for sure: if they want the PS4 to be successful they need to do big changes at SCE. The current strategy does not work anymore with MS in the console business.

In conclusion, there's only one sure thing: SCE will go through changes.