@Smashchu: Actually Sony can copy as much as they like (though, as a strategy it's much more efficient when you actually lead your competition), but what they can't do, is lead the way. And that's what the shield is about.

@Onimusha: If we take N64 as the console to compare with PS3 and GC with PS4, you'll get the point which Avinash is trying to point out.

Perhaps I am wrong. What I took the sheild as is the firms motivation (which is lacking in the larger firm) that prevents the larger firm from doing the same. My recolection was that Sony couldn't copy Nintendo and make a similar product becuase they lack the motivation to do so and will fail.

I did get to read the first few pages of The Innovator's Dilemma via Amazon page viewer, but I guess I can't cheat. Only 12 bucks though.

In that regard, yes. Sony is doing much worse, but still, from the point of market share none of the current standing parties have done as poorly or sunken as low as Nintendo did with the Gamecube. The point though is Nintendo was able to survive this drop regardless the circumstances. If Sony can't survive then so be it.

Profit wise they are doing far worse then Nintendo has ever done.

@Smashchu: That depends which way you want to view it. What they can't do, is lead the way as Nintendo did, but what they can do is "PS Sports" and "PS Fit" for example. If they did, the moment their copied product would be out, Nintendo would already be releasing their next disruptive software. That and WM+ is one of the reasons why we haven't seen "X-mote" or "PS-Mote".

What the assymmetries of motivation is largely about, is when one sees a customer, the other one sees tech. The innovator made the product the customer in mind and the incumbent sees the tech in it and thinks it's the tech that made the product a success. The incumbent copies the tech, but not the actual innovation in it.

Well, i don't think they'll axe the whole game division since ps2 & psp hardware are still profitable. They don't really sell much software though. I don't see them keeping ps3 around if hardware & software are still losing money combined.

Anyone here know if ps3 hardware/software is making or losing money in recent quarters? I only mean ps3 NOT the playstation brand.

Your're right i forgot about PS2 and PSP sales.  PSP sales aren't down that much.  However the PS2 is probably still a big money maker in addition to PS3 software so maybe troubles do abound.  I can only hope that  releasing more software with larger numbers this holiday season along with Home, Video Service, and Music Store can make up the profits.

@Smashchu2

1. companies being disrupted can survive.  It isn't unheard of.  It's not like poof they disappear.  the question is does sony have what it takes to change the direction of the company and with the recession it looks like they would have had to anyway. Besides it's not like Nintendo's software is doing anything they haven't already done with the PS2.

3. It's not like they weren't going to advertise anyway.  i don't see how that is extra money for them to be spending.  The point of waiting till Q3 or Q4 is so that they can achieve profitability in PS3 hardware at least even break even.

4. The PSEye can target whomever they choose for it to target.  Generally it has only been used with  casual software at least last generation.  Price is something that everyone knows is going to change over time.  Not so sure about Nintendo since they probably don't have to.

5. Sony's biggest problem this gen is their advertising not their offerings. If Apple and Nintendo are anything to go buy they should simply show people of many different backgrounds having a ball to make their product cool and hip. A few exist and I think they are slowly moving in the right direction.  Here are some decent examples.

http://www.youtube.com/watch?v=ZVa0B3cjLII

http://www.youtube.com/watch?v=Vc08aKTKSJo

You're missing the point nitekrawler, Nintendo products are elegant in their simplicity, anyone can get used to using the Wii, not everyone can get used to the PS3 control scheme

I've been saying this for years, but I was probably dubbed a sony hater by most who read my comments. Sony squandered the dominance of the playstation brand, and they aren't going to get it back unless nintendo AND microsoft stumbles. Those two rivals have more resources, and more experience in software than sony, which will make it very difficult for them to counter.

http://www.mcvuk.com/news/32816/Sony-denies-drastic-cost-cutting

uh ohs for sony haters.

Huh?....

Sony will not axe the PS3. As much as you fanboys would like to think so. Its just not gonna happen. SONY are just gonna try and make it profitable this year. Even if it means NO price cut