This is how Sony could win this genration. First, they would have to assemble a time machine. Second, they would have to go back in time. Third, they would have to make the Wii before Nintendo does and release it. It's actually pretty easy when you think about it.

This.

OT: Sony is in no position to gun for first place - nobody is catching Nintendo, it's pointless to try. To "win" they need to focus on making as much money as they can this gen, so they can release another console. Massive pricecuts would be working against this.

Exact a mundo,  sorry to say this but Sony need to make the PS3 there gamecube or N64.  As in make a profit.  If not there doing a SEGA and going in next system still bleeding from there last system.  Which comes down to if Sony (being most there profit is elsewhere)  is willing to keep SCEA alive.

They'v got to cut down on production.  Assembly needs to be cut down.  Not waste production time on the PSP (outside of japan its dead, let it go, stop trying.)  start making software that will SELL A LOT when it needs too.  MAKE IT EASIER FOR THIRD PARTYS TO WORK ON THE BLOODY THING. 

Then they might make a profit.

The real war is PS3 vs 360 anyway.

Uh huh, yeah sure, you keep telling yourself that.

Price cut is a 'little' difficult right now, though I'm sure they'll have to do it anyway. It's more about whether it'll happen this spring or next fall. Home is not a system-seller and they've got it in a decent condition anyway. What they need for it is content and that's not about whether it's a beta or not. Gran Turismo 5 could have a decent overal impact but God of War is definitely not much of a system-seller.

PSP is selling rather well, albeit it could do better. I doubt they're really going to do too much about it, 'cept for new features and games. They've been after the value thing for a long time. Piracy is a problem they'll have a hard time dealing with at this point; I doubt they're going to be able to deal with unless maybe if they switch to digital distribution. Anyway, PSP's problem is more about software than hardware.

Pricedrop: willhelp, but it will still be more expensive than their direct competitor the 360. Since 90% of the library is the same between those two price is the main differentiator, which will liekly always be benificial to Microsoft.

Games: GT5 is huge and will sell hardware. But how much? I would say if sells 2 million consoles is an insane achievement, the reality will likely be much less. However even a console boost of 2 million won't get it close to the 360.

BluRay: Standalone BluRay players are much cheaper now. Plus the economic crisis will likely decrease interest in the medium, due to higher prices of the films.

Home: only core gamers really care about Home, and most core gamers already have a current gen console. 95 million current gen consoles have been sold already, so the potential customer base will get increasingly casual, which doesn't benefit Sony.

Sony just needs to get the PS3 profitable, so no pricecuts until they match the manufacturing costs and great first party software. PSP is doing good and looks like its life will be increased dramatically, due to very strong software support. The last thing Sony needs to do is throw away money.

I can't belive how delusional some people are.

did nintendo die with their back to back "failure" consoles? Nope. So why do people think sony will lose its playstation brand because of one system not selling amazingly well? Isn't it already close to selling more units then the gamecube and xbox last gen? No matter what you say, the numbers are closer this gen then last. the leader isn't 80 million ahead.

I wont win, the competition is over. PS3 will stay in the 3rd place which is not that bad, since PS3 owners still get great games, time to focus on gaming not on planning Sony's victory.