I agree with killergran. Spot on analysis .

The ps3 will be fine

 Do you mean that as in "best third place" or "best third console by a company". Well, it doesn't matter - both are yes. Well, it will beat both that is.

Best 3rd place is GC with 21.74M

Best 3rd console is N64 with 33M

Ps3 will also beat the best 2nd place (N64 again) and could possibly beat one of the "winners" of the generation (SNES with 49M)

The Ps3 could sell more software than the NES (500M), but that is on the slightly unlikely side. It will definitely beat the SNES in SW (380M)

The Ps3 will make more revenue than any previous console that isn't a playstation ever has.

PS3 not really being killed just had a temporary downfall during the last quarter due to the holidays and being 2x the price of its competition. The PS3 isn't in any bad shape.

Worst case scenario: What you see is what you get. Sony doesn't have any cannons left to fire, and because of the financial trouble they cannot cut prices. Blu-ray refuses to take off and HD absorbtion-rate slows down. In this case, Playstation 3 sales can only go down, and they'll fall further and further behind Xbox 360, and will be crushed completely this year with no chance of ever stealing second place.

Best case scenario: Sony manages to cut prices despite the economy, Home takes off as the place to be, megaton-coming-this-year exclusives announced, plan to capture casuals and party-people in effect. Playstation 3 finally lives up to its potential in the eyes of the public and all those hesitant in the console war will see it as the place to be. Sales increase and PS3 halves the distance to the Xbox before 2010.

Probable scenario: Sony manages a small pricecut, Blu-ray helps a bit, announced exclusives do well in the eyes of the public, a couple of casual games help its damaged image. PS3 and xbox finishes the year neck-to-neck, the battle swings from side to side, neither coming out on top. - well, this is my probable scenario anyways.

This is somewhat of how I picture 2009.

I meant best third place, hadn't really thought of the other :) Thanks.

So, there you go. The PS3 is doing really well. It's just not doing very well compared to the others.

Bolded sentences makes no sense. Could sell more, but it's unlikely in first sentence. Definitely will, in second. Typo?

 First one is supposed to be NES

It should be

The Ps3 could sell more software than the NES (500M), but that is on the slightly unlikely side. It will definitely beat the SNES in SW (380M)

Wow, I didn't expect my first forum post to catch on so quickly. Once again thank you all for your uplifting and very well thought posts! -Reginthorn

Yes. SONY just needs to put on their thinking caps.

What really needs to happen for Sony to turn things around is a price cut; the question is if they can even afford it. In both 2007 and 2008, people kept pointing to games that would supposedly sell a system, and they did- for a couple of weeks. Sales fell right back to normal. Given that games just aren't pushing hardware anywhere near the way they used to, one needs to look at what can be emulated that's worked. Retooling a PS3 to be like a Wii is too impracticle, so that's ruled out. However, the 360 really started pulling ahead after its last price cut. Sony needs to counter this, and they can: with a cut of their own to match. However, the longer they wait, the less good it will do. I've been thinking the ball is in Sony's court for a while, it's up to them to act on it.