Yes. I think it could happen if Sony decides it doesn't want to continue in the gaming market, but that doesn't seem likely.

What they do need is a hell of a change in strategy for the next-gen. If they can't or don't want to change, they're ensuring failure with a richer MS in the game stealing their money advantage.

Only if they couldn't get the PS3 to profitability; if they can make it profitable, they can keep it going for a while so they can consider where they go from here.  If they then decide gaming isn't worth it, then they'll leave.

I pretty much agree. I'm really not quite so sure about the price cut thing, though, as I think Sony might just cut the price next spring. However, fall is a realistic prediction as well, and maybe even more so than spring.

So what you're saying is that PS3 won't start selling more then 360 when it gets a price drop?

No.

I'm saying that Sony can no longer rely on price advantage and 3rd party exclusives because a competitor like MS has more cash to one up Sony in those areas.

The 45 Nm RSX is meant to be implemented soon i think, so im sure Sony are finding ways to cut production costs.

Well whatever happens it will be interesting to see how everything pans out. The Sony executives know what is really happening and what needs to be done, here were just guessing and doing nothing more then that.

It seems production will begin in 2009, which is definitely good news. Even considering that I don't think they'll want to cut prices early in the year.

An early $100 price cut would be very surprising to me, a $50 price cut less so. If the yen doesn't weaken I'd be very surprised by both.

Yep, Sony is a hardware company and are obviously working constatly to drop production prices for various parts. Manufacturing costs are constantly going down with that the likelyhood of Sony making profit with the PS3 increases. Add on all those software sales, prephirals for the console and a brand consisting of 240 million units sold, it's pretty sad to know people think Sony would give up on the PS3.

I really hope people are simply being fanboys and thinking that way, I shudder to think people actually thought the PS3 would be discontinued. :/

I think a $100 price cut will come sooner rather then later simply due to software. These gaming companies make the majority of there cash from software are accessories and to play PS3 games you need........a PS3.

The 360 has fantastic software sales and must be making up for the price cut last year, Sony need to follow suit.