@Procastinato: You do realize that Sony didn't detail the restructuring of the games division yet, right? They did say they would "fundamentally reorganize" it if I remember the words correctly.

It's too soon to talk about that since no one knows what they'll do.

I think Sony is just as open about their plans as MS is, if that answers your question.

Sony is also coming from the "game division makes us money, most other divisions aren't right now" perspective, whereas MS may be coming from the opposite.  Its no coincidence that MS's EDD division turned a profit during a Holiday quarter that Gears 2 and Fable 2 were also released in.  Sony's game division didn't really do exceptionally well over the holidays, yet.. they still managed to turn a profit anyway.  

I suspect that we'll see Sony's game division in the black again, come the next quarterly announcement, despite losses in other divisions, although not by much.  MS... I'm worried may be red.  More red if they hadn't axed studios, which is why I believe they did just that.  I'm just of the opinion that pleasing stockholders for a quarter, or two, won't make up for the loss of the good studios, in the longrun.

So you know what Sony is going to do in the games division, besides merging it with vaio/walkman? I don't think anyone knows that yet, since they didn't announce it besides saying there would be a fundamental reorganization.

I think it's a big stretch to expect SCE to be profitable in the January-March quarter, given that they only made $4 million in profit during the holiday quarter (basically a break-even result given the amounts in question). What's your rationale for that?

Where did I say I "knew"?  I'm just stating that your statement, above, applies to both MS and Sony, on a rolling basis.  Either could announce more cuts, at any time.  They have to stay on the move, obviously.  MS has axed studios, internal dev teams, etc.  Sony has not at the present time.  That's how it is.

Its fine for you to disagree with me, with regards to you thinking Sony will cut staff in its entertainment division, and my thinking they won't.  I've explained my reasons for thinking so -- why make cuts in one of the best divisions, and one of the only profitable divisions, as well as its being in a rare sector that showed growth during the recession?  Wouldn't you be better off reinforcing it, on the whole?  Refocusing towards it, rather than away?

MS has plenty of better performing units, as I recall.  Hence, their stance, I guess.

I'm just going off Sony's declarations which are pretty strong (emphasis mine):

No more has been announced yet, but they should announce more by the time the next quarterly report is released, the latest.

@Procastrinato: It's easy to see why M$ is selling some of its 1st/2nd party studios. If they need to cut jobs, that's one of the best ways to do it. And if M$ owns the bread and butter IP:s of the studios, it really doesn't matter if the studios are 1st, 2nd or 3rd party.

As for Sony, since the whole company is in crisis, they need to cut costs even from their profitable functions, what SCE isn't this quarter/this year. Sony posted a very small profit in their FY Q3 due to bad hardware sales and relatively good software sales, volume, that isn't going to happen outside christmas period.