Thats not my main point. My point is that Sony will decide that they have no chance for a recovery,. and while they could end up with solid 3rd/ very weak 2nd, they might opt to drop out of the market entriely becuase Sony itself is doing so poorly. Then I compared holiday sales growth to that of the Saturn to demonstrate that PS3 has terrible momentum, which may make Sony conclude that PS3 is a lost cause. PS3 sells MUCH more than Saturn ever did, but its november sales growth is roughly 125% less (105% growth for Saturn vs -20% of so growth for PS3) I even use 2 articles to back up the %s to show they aren't made up.

I don't agree with the OP because Sony still has a lot of new IPs to come. Everybody knows that Sony had the best IPs (Crash Bandicoot, Sly Cooper, Spyro, Jak and Daxter). There will be a price cut eventually. Can't say when. It is really Sony's fault. They should have never put the price of the ps3 at $600. That's what caused the whole problem.

Wait, did you just say Crash Bandicoot and Spyro are Sony IP's? Is that some top notch sarcasm or what?

You need to read more than headlines if you think this is the case.  Certain divisions have been bleeding the company for years (sony/ericson and sony's rear projection TV division are the leaders in failure) and their new(ish) CEO is still trimming the fat.  Price increases and cut sales forecast are in line with the combination of the insane Yen currency issues and a global fall in demand for consumer electronic goods. It is not unique to Sony alone(i.e. Panasonic, Toshiba and Toyota).  Sony's electronics division has its ailments (sony/ericson and rear projection tv which has been axed) but I wouldn't paint such a bleak picture based on nothing more than a headline with full details yet to follow.  Sony's gaming division is only a small portion of their company, much like Microsoft.

I've read about it. I think he will decide to get rid of the Sony Ericson cell phone line and the Playstation video game line, or at least the unproiftable PS3. Its done its job for Blu Ray and Sony might not be able to afford more losses.

Both of those are unlikely to happen. Sony/ericson is backed by samsung and the video game division as a whole is stable outside of currency issues.  Your taking stabs in the dark now and I think if you turn the lights on you'll realize your wielding a wooden spoon.

I do however think that Sony will cut their robotic dog line.  Yes Virginia, there is a Sony robotic dog line.

look i just have to say this about the ps3 sales.people are losing jobs by the thousands every day all over the world.banks have to be rescued by there governments.shoping markets are closing by the dozens.car manufacturers are in trouble and factorys all over the world are closing down.every one all over the world are trying to save money and christmas is upon us.of course people are gonna buy the cheaper consol for there kids this christmas.this doesnt mean ps3 will fail.

Then why did the $200 xbox360 sell less then the $250 wii last month - or for the entire year perhaps?

I'd also like to point out that all the industries you mentioned have had problems over the past years with the way they where lead. The American car-industry was bloated to it's fullest and failed to recognize the Japanese manufacturing market as threatening causing a sudden downfall. Every teacher I had 2 years ago used it as an example of an industry ready to crash. Expect the steelindustry to go next.

The banks have been living on non-gained revenue for years aswell.

Sony is of course totally different. Concerning the PS3, that has just been a relatively early bad marketing and design call which they can easily overcome next generation (provided they don't cock things up more then they did.) It's the other Sony divisions (someone called them a few pages back, something with back-lighting and something else) that need drastic actions.

no. $400 million was the company as a whole, not the gaming division. The gaming division is either breaking even or turning a small profit. their phone and TV divisions are the ones losing the money.

the simple fact that the wii has sold more is because its a family consol.for christs sake my 50 year old mother bought herself a wii and while growing up she always went mad at me for playing games.the economy has been like that for a few years now but people wernt loosing there jobs.its only since the summer people started loosing jobs.just look at my country.in june there was 150k people claiming benifits off the government and now december there is 315k claiming benifits off the government.you see the pattern.if there was world stats for unemployment youll see a double of unemployed since june 2008