Honestly, I'm not sure it can happen anymore. There are certain things that might turn things around for the PS3, but Sony can't afford to do them. They lack the funds to moneyhat like Microsoft does (and Sony itself used to), and the losses they take on PS3s are already too crippling to be able to afford a price cut.

More AAA games will not save the PS3. Becoming a console EVERYONE wants will. The problem is that the PS2 appealed to the casuals and the hardcore. It was last gens "market expanding" or "Blue Ocean" console. Shifting to a mostly hardcore model to compete with M$ has cost them dearly. M$ has shifted to appeal to more casual games in the last year (notice the pack-in choices). Sony still has Buzz & Singstar, but they have not gone after everyone this gen. Sony always had Bratz & God of War, losing the casual market (as well as the arrogant price) put them in last place. Lack of Cooking Mama & Disney Princesses is a big part of the problem, but no hardcore player wants to admit it. Casual is bad, but lack of it causes last place.

Sony took the Play out of Playstation.... 

Money can only go so far. Just look at last gen. If developers made a game Xbox exclusive, they were losing out on the PS2's 120 million userbase.

I think the 360 will continue to beat the PS3 in weekly sales until a PS3 price cut. When is that? When Sony thinks it is necessary. A price cut will not drive Sony bankrupt, contrary to popular belief, Sony is actually an extremely rich company. Granted, it's not as rich as Microsoft, but it's no pauper. Besides, manufacturing costs will drop and drop and they can dump WLAN.

@Derixs: Because LBP and LAIR are the only PS3 exclusives currently out...
WHY WOULD YOU EVEN MENTION LAIR?

don't see a priceut happening in 2009

Microsoft said that the Xbox 360 will finish 2nd this generation so I'm sure they'll make everything they can to weaken the PS3.

Really decent JRPG lineup in Japan comparable to the DS......hell even comparable to the 360.

SRPG will not cut it alone.

Rich company? 

Have you seen any finascial reports on Sony? The last thing that Sony is is rich.....

The financial solidity of the company has been catastrophic and the last couple of years has been about selling out business to create some kind of liquidity in the company. Like selling out CELL production to Toshiba.

The only thing Sony is rich on is fixed assets like plants, buildings and so on but when it comes to real capital they have more or less no space, most is done through different types of loans.

Looking on the Cash flow at Sony you will see that the company generates extremely little money. Often less than 1% of the revenues which is horrible.

Both 2005 and 2006 they had a negative cash flow with more money going out in total then going in (- 654 million in 2005 and - 646 million in 2006). In 2007 they manage to get in + 822 million but that is mainly to selling out assets which is the same reason why they will have a positive cash flow in 2008 – selling of plants to Toshiba.

In comparison with Microsoft that will generate 4.228 BILLIONS in cash inflow last fiscal year. Without seeling assets.......

So Sony rich? NO

sony selling cell production to toshiba???, wat are you talking about?. Toshiba, IBM and Sony otherwise known as STI made cell. they all came together and made the cell processor. each of them have the rights to produce and distribute cell in their products, Toshiba doesn't need to purchase cell from sony cause they helped make it

Yes they have the IP rights. But the fabs that Sony used to produce CELL and which they also owned has been sold to Toshiba. So every new CELL ship that is being produced for PS3 in done in former Sony fabs that is now owned buy Toshiba.

http://arstechnica.com/news.ars/post/20071018-sony-to-sell-ps3-chip-fabs-to-toshiba.html

Hench. Sony sold the fabs to get some free cash quick. So instead of owning their won production they now buy from Toshiba.

So even if Sony shares the IP right of CELL together with Toshiba and IBM they don't produce them any more since they have sold out their chip fabs for CELL to Toshiba.

To answer your question, when Blu-Ray becomes affordable and there's a $299.99 SKU for the PS3 and several PS3 titles(Gran Turismo, God of War, Final Fantasy) I expect stronger sales.