Focus more on getting more content on PSN store and Getting PSN Cards in more regions.

Work to get some more video content and PS1 classics on the PS Store.

yes they were getting "owned" but exactly how many years did they post a loss, I think MAYBE 1 in the GC years... The Gamecube actually made Nintendo money.

So now, who is smarter. Sony has more years of posting a loss with the PS3 than Nintendo has... like ever. (reffering to gaming divisions)

Basically Numbers aren't everything, if nintendo would have spend 10s of million more on the GC launched it at 99 dollars and paid for AAA exclusives they would have sold alot more cubes. But it would have been a Pyrrhic (sp?) victory.

- New model PS2 without an optical drive, but instead whack a HDD on it and have it as a download only console (no games should really be above £15-£20 at this point, with a lot of the collection sub £10). Put the entire PS2/PSX library on there and make it also available to the PS3. Sell the unit for £60-£70.

- New model PSP. The major enhancements this time? Battery life and killing the UMD drive. Include an internal storage unit, again download-only console. However, there should also be kiosks in malls and shopping centers where people can hook up their PSPs and transfer games straight off there. Add a camera for teh cazualls. Price: £99

- New, slimline PS3. Bring back BC. One SKU only. Should use locked SSD drive at around 160gb. To make up for the fact that the HDD can't be upgraded, the BD drive should be faster to kill the need for installations (games can still detect which model they're being played on and require installations on older models). Whole new rebranding to make it more like an Apple product in consumers minds (copying advert style, etc). Multiple colours. A "casual" bundle (including a chick flick/comedy blu-ray film, singstar or buzz and a £10 Playstation:Store voucher) and a "hardcore" bundle (including the latest action film, the latest big hitting title, and a headset). Price: £299 at launch (same as now) drop to £250 a couple of months later if sales stagnate.

oh and for god's sake make the PS2 $99

yes profit margins will be lower but it would sell more!

I bet Nintendo still sold GC hardware for a loss! $100 is cheaper than the PS2 is, even today... They just had their handheld business to cover them and they never sold all that many at that price anyway.

@ Saving the PS brand?

#1. Price the PS3 so it is only slightly profitable, let the increased sales help the first parties do their job of bringing in revenue. These revenue streams are very profitable, the goal is to get the PS3 into self sustainability as quickly as possible without dipping into the red ink.

#2. Sell two distinctive SKUs, make sure the expensive one is profitable -> Bring back BC but charge $150 for the priveledge.

#3. Let things ride out, and change the damn advertisement company.

To add on to your second point, Sony really needs to stop betting on the wrong horse.  Heavenly Sword and Lair really hurt them when they NEEDED good exclusives to keep up the momentum after launch.  Whereas Microsoft made some great bets with Halo (for the original XBox), Gears of War and Mass Effect.

Sony have just now started recovering IMO from a lack of must-have of exclusives.

Do you mean rescue it from last place in sales, or money?

Because if you mean money, advertise more, use better bundles (LBP with all consoles), and DO NOT drop price

If you mean from 3rd place, drop price to $299 and watch it climb from 3rd to 2nd, and close in on the Wii.

The problem is that while I know what I would do to save the PlayStation brand, it's not something Sony will ever do, because it involves too much loss of face. I would admit the mistakes of the PS3, revive and retreat to the PS2 as a known position of strength, and prepare the PS3 for a relaunch in the next generation's timeline.

1) Focus on cost cutting to stop the losses

2) PSN: Since the XBox Live is doing much better, I would pull the oldest and most widely spread tatic: copy what others have done right and use my brain power to create something actually new. Avoid reiventing the wheel.

3) 2008 sales clearly point that the PS3 can outsell the Xbox even costing more, as long as the difference is not too big, so I would aim at a 299 price point for the next holliday season.

4) No intermediate price cuts, $50 for example. They would not make a big difference for the costumers but would create a big loss for Sony without the return in higher sales.

5) For the Easter time, a bundle with a big hit game, like was done with MGS4, selling at a slight higher price. Not too high but enough to sell without a loss. If the one big hit was not enough, maybe one or two other cheaper, poor selling games would go along too to create value.

- PSN cards need to be everywhere that Wii Points cards and XBLA cards are. There needs to be more content available, especially PS1 (and eventually ps2) games.

- Make their advertising clearer. I get Nintendo's Wii commercials - they are focused, show gameplay, show people having fun. Simple. PS3 commercials? I own one and don't know what's going on half the time. Fix this.

- In a year or so when the ps2 is really on its last legs, release an optional firmware update to allow non-ps2 bc ps3s to play ps2 games. Bundle it with one or two dd ps2 games and sell the update for $25.