Hmmm. Perhaps Electronics division should have a fire-sale to move some of that stagnant inventory

After all, getting some money back is probably better than getting no money at all

PlayStation divisionwill make its 3rd consecutive loss which cumulative will bring it little unde 4 billion in just 3 years. 

Growth is important, but it's clear that something's completely wrong with SCE's strategy. Besides Sony has to cut somewhere, so much is clear and all executives of the different divisions will lobby for their personell and budget. Who do you think the board will rather spare;

a) a division that managed to go from 70% marketshare to 20% while in the meanwhile never posting something even close to a profit, even during the economic healthy times or
b) a division that's hurt badly by the crisis and Yen, but did profit the last couple of years?

I don't see a tough choice here.

Business at Sony's gaming division is shrinking rather than growing. As for the market as a whole yes, it's growing but the growth is just for Nintendo and not much more... In the long-term I agree with you, but the question now is more for the short/medium term.

Price cut!? Are you serious. Do you want Sony to go bankrupt?

Yes, I am serious. I still think it will happen. Just an inkling.

Probably a small & late one, though, e.g. $50 in October, as opposed to $100 any earlier.

http://biz.yahoo.com/ap/090122/as_japan_sony.html

here is yahoo's take on it. much of the same, a bit more details on the layoffs though.

According to this chart and graph, the only things that made their previous forcast sales numbes were Digital Walkmans, Blu-ray players and PS3.  Everything else, including PS2 & PSP, was adjusted down in forcasts.

Hmmm...so BR players weren't adjusted down - might be a positive sign

That said, nothing was adjusted up either

One area where Sony got hit really hard was the closing of Circuit City. Back in October when the banking system unraveled and it became apparent that Circuit City was busted, Sony stopped delivery to CC out of fear that CC's line of credit was going to dry up and Sony would not get paid. Those fears proved correct.

Sony manufactured quite a few million units of everything for America's second largest retailer in anticipation of Black Friday, then abruptly had to take all the product back.

If this was any other kind of forum we would all be saying that the playstation would be chopped, it is losing money, doesn't look in the short term to be able to turn that around. The only way of selling more PS3 is to cut the price which would lose more money. This is a no brainer for any one apart from PS3 owners. The PS3 is failing and nooeds to be stopped. Maybe in 2 or 3 years they could relaunch the PS4 but as a sony devision it looks doomed. All the other devisions were making money last year and will again without a harmful price cut. This is reality not wishfull thinking.