I have little doubt that this thread was intentionally inflammatory. Though I will answer the question posed as if it were genuine. Rather then troll the troll. Seriously guys if you feed them they stay, breed, and produce offspring. A little prevention can go a long way.

The answer is that Sony only has one real option. Even if the sales slip another fifty percent Sony still only has one option. They have no choice, but to continue forward. Though eventually they will be forced into liquidity issues again, and will be forced to cut the price of their console.

I think it has been explained before in detail, but I doubt anyone wants an essay that half are too lazy to even bother reading. Suffice it to say the way Sony makes their consoles is full speed ahead, and they cannot just reduce production to match demand. Let alone do so and maintain cost cutting advantages. Even worse their manufacturing isn't subcontracted out to other companies. So if they can the console it is their plants sitting idle, or needing to be retooled. So even if they can the console they will continue to lose money because of it.

Unlike Microsoft which can just cancel a contract with one of its three suppliers. That is the real difference in the end. Sony is so involved with the PS3 that it cannot abandon it. All roads it seems lead to the PS3. This is a good argument for not turning a device into a panacea for all of a companies divisions. It really is one hell of a crap shoot.

Sony is probably still willing to another three billion to five billion in losses. So I doubt it would have any effect this year even if it did come to pass.

Lets look at revenue for a moment (I'm estimating for Americas numbers):

DS ~ 320,000 worldwide this week - * $160 (avg sku price) = $51.2m

Wii ~ 198,000 worldwide this week - * $250 = 49.5m

PS3 ~ 85,000 worldwide this week - * $400 = $34m

360 ~ 98,000 worldwide this week - * $270 (avg sku price) = $26.46m

PSP ~ 100,000 worldwide this week - * $185 (avg sku price) = $18.5m

PS2 ~ 60,000 worldwide this week - * $100 = $6m

In terms of revenue, PS3 does ok. The problem is in profit. Sony may draw in $35m or whatever in revenue this week, but they lose $38.5m for those PS3s sold, and then a number of their own games probably earn less than they cost to make because of the size of the base, and then on top of that the Yen hurts, and PSP and PS2 revenues are shrinking rapidly.

EXACTLY!!!!  Revenue is POINTLESS - NET PROFIT is the only figure that matters because that is the money you take home.

And sony ain't been taking any money home lately :)~

^Quit trolling Truthprophet. Same with "The Xbox Man," although his ism ore laughable (just got his "360 must be undertracked" thread lol).

I honestly believe the best course of action for Sony is to let the PS3 die. I'm not trying to flame or anything, but realisticly speaking, PS3 did what it had to do, make Blu-Ray the next format of choice. Now all Sony needs to do is cost manufacturing cost of PS3, let it at the same price, and begin a business model like Nintendo. Who cares if they end up in third, at least they'll get some money back and can worry about PS4 instead.

 Since when is pointing out FACTS trolling.

If you don't wanna hear the truth go listen to some sony PR or go to n4g.

Truth is, your big black foreman grill is a money pit.

Plain and simple.

if the ps3 costs 440$to make, then it wouldnt be losing 38.5mil would it? more on the lines of 10% of that?

@the truth!

THank you!

I love all this "the 360 and the PS3 are soooo close! how can It be the 360 is so much cheaper"

Honestly ..

There is no room for the 360 to sell an extra 40k a week over the PS3 because the numbers overall just aren't high enough.

Great example is Japan. Who would of though the 360 would be within 10k of the Wii and PS3 last year? Its because the numbers are low. If the market was healthy it would be 360 handily beating the PS3.

But the market is down and this is to be expected ...

I think it will just get worse as we get close to E3. Because people think if there is going to be a pricecut it will be announced at E3.

After E3 it should pick up again especially if there IS a pricecut.