Wi-fi costs them less than $5. It's not an issue. At this point, removing something so trivial is Apple-esque (meaning that you remove a cheap feature to make a premium device look more attractive).

The problem is that Sony will never enjoy Apple's success. They don't create new products that capture the public's imagination like Apple does (yes, even the Playstation... Two billion over 6 years is a joke to Apple after the iPod).

The PS3 is fine, sales are far better than you'd expect at a $400 price point. A software emulator for PS2 titles would be nice, but isn't essential. Cut the price to $299/299EUR and sales will explode.

Their greatest strength is their studio system, no question. Little Big Planet alone is going to be a heavyweight franchise, and KZ2 and GoW3 are in the pipeline. Home also has huge potential, but I'm still waiting to see if Sony is going to give gamers the creative freedom they need.

Stop advertising the system as a multimedia machine, and instead focus simple ads/commercials with just games.

Revamp the XMB. Its way too cluttered, font size is crazy small on hdtvs, and looks amatuer.

Make a wired headset that plugs into the controller. Include it in future consoles.

Focus less on big multimedia high dollar games, and start making more simpler games with an important element that got people interested in videogames in the first place-gameplay.

Price cut. Not $50, make it $100. People have been patiently wating for this, reward them for it.

Sony should go back in time and lower the price of the PS3 at launch.

These seem the most sensible to me for the short term. The b/c may cause some problems, but in the long run I think it will make more PS2 owners feel comfortable with upgrading.

As for games, why not Resistance and Little Big Planet? Two very different games to advertise diversity.

As for hitting $299 I think they have to wait to do that until it will not hurt badly. Late 2009 is the earliest possible - early 2010 is more likely.

Square-Enix will stop "despising" them when they can sell their damn console.

Its easier to say "do it better" than to do it (see 360's Avatars). The best way they can beef it up is to start charging for it. Right or wrong, people feel that something being given away can't be as good as the stuff they pay for. And that money can be used to improve the online experience.

 For the long term...

Sony has to let go. They screwed up badly by assuming momentum would make the PS3 the new PS2. The console is a relative failure, and they must abandon the ten year plan. In three years Nintendo and MS will be putting out newer and likely more powerful consoles at more reasonable launch prices - and expect them to be announced in 2 years. That's going to dry the PS3 market up like a witch's twat.  A ten year plan only works if you're a winning console. The PS3 has no future save as a bridge to the PS4.

So how do they salvage the PS brand? First they need to rethink this "home entertainment system" mentality. They put far too much emphasis on the entertainment, and not enough on the gaming. That's what drove the PS3's price through the roof.

They need to focus on gaming, pure and simple. Whatever extra functionality comes, it cannot drive the launch price above $400, and that's a ceiling. $300 would be better. Sony has the first party developers it lack in past generations, and should still have good relations with most third party developers. Get back to gaming, gaming for everyone, and they should be able to rebound again.

Agree, but I see them more like GE.  They try to do too many things at once and be the dominate player in each of those sectors.  Though, to their credit or luck, had a 30% IPO of their financial division (Sony's cash cow) before the collapse of the financial sector.  However, with quarterly earning around the corner, I'm much more worried about their remaining exposure to this sector than their gaming division (though their electronics divisions could be in store for a big disappointment too) 

No matter how low Sony drops the price of the PS3, Microsoft will drop the 360 price lower.

When it comes to that aspect of the business, Sony is fucked. I doubted MS's competence in 2007 but they've proven me wrong in 2008. They knew exactly what Sony had done wrong and they've exploited it to their advantage.

The best part for them is that they didn't have to lose their ass doing it.

So people are going to be jumping out of their seats in excitement because they have to waste 60$ more?

I was originally thinking GE but GE is still entirely relevant and hasn't really lost anything as far as I know. They're an extremely progressive company that has suffered from the current crisis, but is very stable otherwise. GE is one of those mysterious companies that has their hand in everything (like Honeywell) and, while it rides market currents like everyone else, doesn't ever seem to diminish in the long run.

I would say keep doing what they are doing now except add more advertising to the list. They could also add more value to their bundles like 2 Sony Blu-Ray movies plus a decent game.

Once they are profitable, you don't want to really through it all away with another price cut right off the bat. So they should try and hold off on that until around Thanksgiving and then cut it by $50.