I think Sony will be happy with 50 million LT (or 60-75 million as TheSource predicted) for PS3 and ends at 3rd place if they are profitable with it. The problem is they are not.

During the N64 and NGC eras, Nintendo sold a little over 50 million combined for two generations but still made money then. Now they are just making insane amount of money. Since they have been through the "bad" time then, the worst that can happen to Nintendo next gen is they ended up losing the console wars again. However, they would still make money. It just won't be insane amount of money.

Nintendo will be able to better afford to create and develop for their next supposedly HD console.  By then, "HD technology" would be cheaper to product so that will work in favor for Nintendo.  And hopefully, they are financially preparing themselves as we speak for that console with the current financial success they are earning.

good points.

I wonder if the Wii profits will be eroded as the PS2 profits were.

Cheaper HD components and dev techniques "should" help lessen the blow, but both MS and Sony already have stable-ish platforms and experienced HD devs to build on. should be interesting.

"Disrupting the industry???" What makes Nintendo successful and relatively financially stable is that they cater to the core. I don't see why this should be a problem. If a Nintendo console doesn't appeal to you, you have other choices. And about the claim that SONY does not make franchises people do not want, I have to respectfully disagree. Looking at SONY's wide variety of franchises, you could be right at face value. But many of the franchises that "no one wants" are catering to those who are into those franchises. That's going for a speciific target audience instead of just going for the masses. Of course SONY also targets the masses, but they also cater to those specific audiences.

Lol 50m? That's a bit high. More like 35m.

I don't think the OP is using the expression "wake up call" correctly.
It would be apropriate if Sony was already screwing up with the PS1 and/or PS2.

Sony had their "wake up call" in 2007 when PS3 sales went down the tubes and Ken Kutaragi cut his losses and bailed out. Since then, Kaz Hirai has pretty much salvaged the PS3 into a real competator this generation. PSN has expanded astronomically and can be compared to Live, PS3 manufacturing costs have dropped over $300 in two years, and weekly PS3 sales since launch continue to chart at or well above 360's almost every week, including the last two months.

Err.. 30 mil LTD? A bit shaky on that one. Although I do agree that they wouldn't overtake the 360. Still.. 30 mil LTD.....

Everyone that talks about the price forgets that it was impossible to predict that the whole worlds economy would collapse like it did when the PS3 was launched let alone the years leading up to it as the decisions were being made in it's development stage. Even at it's high price tag it's managed to put up a fight selling more consoles faster than the 360. In hingsight it was the wrong decision but at the time it was very much a good decision. Had the world's economy stayed as it was the PS3 would be doing much better. I doubt it would have beaten the Wii but it would have been a bit closer.

When do you think the PS3 launched and when do you think the economy went to hell?  I assure you, the economy had nothing to do with the first 2 1/2 years of the PS3's life, people just didn't want to spend $600 on a toy.