Pay attention to the "I". I was giving personal experience and the fallout. I'm not talking about others. When I start talking about the market as a whole i'll get back to you.

@S.T.A.G.E

Sorry, I guess I should have been more clear. If Sony can reach $199, release a slim, and be profitable on each system sold I believe it will last quite a while. I did not mean this year, because that would be impossible. I just hope they can hget Cell/RSX down to 45nm this year, and be able to be near break even at $299. If they can get to the point were they are producing the system for 280 - 300 USD, and selling at $299 by September or October I think they will be fine. I don't expect to see the PS3 hit $199 until Q3 2011.

 Hmmm interesting. The funny thing is that I don't think it will matter to Sony as long as they create legs for the PS3 with the 10 year lifespan. Sony will gather money overtime. The question is will they drop the price at the right time to make the most they can within the 10 year lifespan?

The consumer decides. I would not be surprised if the PS3 did not make it to 10 years. If the gap between it and the 360 grows then retailers will gradually stop pushing it to consumers as well I think.

Sony decides how long to keep producing it, the consumers decide how long to keep buying it.

It's quite foolish to assume that the 360 is going to beat the PS3 every week for the next 8 years, really. We've all seen how a simple price cut can completely sway the momentum. As long as people keep buying the PS3 (which they might well do, depending on the PS4's release date), Sony will keep manufacturing PS3s. I don't think retailers will refuse to buy them anytime soon.

 Thats not true. The PS3 will not stop selling because the gap between itself and the 360 grows. Sony made a 10 year plan and a 10 year plan will exist. The PS4 will most definitely make its appearance before the end.

Production depends on consumer demand, consumer demand isn't controlled by Sony, but by the crowd itself. So Sony hs no control over it.

yes?

Well, they could keep making PS3s and storing them and SOME retailers would buy them, so in essence, it would still be alive, right? It's alive as long as it keeps getting games.

Well they have a plan but if it does not work then they will move on. In other words the market is the deciding factor.

What you're describing sounds like life support, hardly anyway to live. Besides, I doubt it will come to that. If things get really bad Sony will pull the plug.