This is confusing, because the report cited by the OP contradicts other reports. David Reeves is quoted by other sources as saying that the SCE cuts will not include SCEE (Sony Computer Entertainment Europe), but that SCE cuts will happen elsewhere.

Like I said the Playstation will be the last thing touched, there is a reason Sony has survived huge losses before..........they think of the distant future not the present.

What happens when Sony sell off first party games like PD, Naughty Dog, Santa Monica and cut the price for the console? The answer is that Sony will get fucked over a dozen times, getting such classy first parties is hard enough so selling them is plain old stupid.

With MARKETING, MARKETING LORDY LORD MARKETING Uncharted 2, GOW III and Killzone 2 would easily do over 4 million, GT5 over 10 million and Sony get most of the money.

So no, Playstation cannot and will not be touched until Sony have gone to the lowest of the low. That will never happen, worst comes to worst the Japanese government would come to the rescue and bail them out, Sony employ alot of people and bring in a lot of money.

From the same article -

Sony Computer Entertainment has told GamesIndustry.biz that the cost cutting measures announced by Sony Corporation today are least likely to affect the games departments.

Missed opportunity. They should have downsized Reeves.

I'd like to know why some people want Sony Ericsson gone when it has consistently been more profitable than the gaming division. It's not profitable now, but I think the gaming division will lose even more money.

Anyway, Sony Ericsson has already announced a downsizing to save 500 million € a year, which is much more than SCE has done. I haven't seen anything from SCE as to how they'll be profitable (other than not cutting prices).

Oh for the love of god people. The PS3's cost is not tied with it's game developers e_E... Why on earth would they scrap them. The PS3 cost of production could be tied to -> Sony Electronics. They're first party developers make games, and those games in turn, make money. They're computer entertainment studio's make more money than they spend -_- Please god stop tying the two together.

Did you people really expect PS3 price-cut so soon? I could see a $30 PSP price-cut in the Spring, but $100 PS3 price-cut? Not until Fall 2009.

Why would Sony cut off many sectors of there gaming department just to cut the price? The cost of manufacturing the console is decrasing all the time, Sony want to wait until they can cut the price and lost minimal amount of money. You know the best part about that? Sony will not have to sell off there first party studios and what not. Once again people on this forum show that they would run a business to the ground in seconds. :(

Interesting fact (?) there, Sony Ericsson had made more money then the PSP, PS2 and PS1? I would love to see numbers, you always have numbers to back up your claims. I would hate for people to be pulling numbers out there ass though, makes me very sad when they do that. :(

@NJ5

because would you like to see Nintendo gone?

people have grown up with the Ps brand....I'd rather the SONY ericsson division take the cut instead of the PS division

I can't imagine gaming without Playstation.....I'd get over it if it went in a matter of weeks but still..I do not want to see it go.

also in the past Playstation saved SONY......they won't let it go