what surprises me is no one talks about Nintendo. people always talked about Microsoft too btw, but nintendo... ?

Also you forgot to add that Nintendo allready has been this arrogant once but they seem to have learnt their lesson even if it tooke them some time to do so.

Because it sucks having to have 3 consoles to have all the games I want and Sony is in last place with the most expensive system. Also, Sony has many other products it can put resources into that can be profitable as well. If 360 failed I would not mind either as MS has windows, office, and tons of other products. Nintendo, well they have wii and DS so it would hurt them more. You say all these jobs will be lost, but the money invested would be put onto other projects, which creates jobs for people with that experience, so in essence it is a circle.  

Sony acts like it was in the past and has an archaic business model. It is the chaff this gen and only so much can be supported. 2 HD systems + wii is too much as you can see the results. One of the companies would have not met goals and would have lost alot of moeny. It was Sony this gen.

@Vasho, yes everyone makes mistakes, but when a flagship product of a big company falls WAY below expectations it is far harder for it to make quick changes and adapt than it is an smaller, innovative company like nintendo. The management system of these companies are simply not set up to. Not only that, alot of the old Sony guard was against changes, so it made what looks to be a good ceo, Stringer, have his hands tied so it takes even longer to do anything. 

read above. This industry is sick and I am not the one that wants it to collapse. I like playing games. But we all know that the industry has been having problems and will continue to have them until they have more people with sense making the decisions. Last gen it was easy to make money. 1 big console, everyone had it. This gen we have 3 and devs have to split userbases that are similar in size (hd vs wii). Not only that, the HD consoles are smaller still if you talk exclusives (which imo should only be for 1st party). But, the people making decisions in the industry adopted the same philosophy as last gen: bigger and better graphics, more production values. This was an ok mistake at the start as everyone thought ps3 was on top till 599 US dollars. 

After that the 3rd parties still continued to make games that had huge production budgets even though the potential revenue and profit were far smaller than it was last gen. Big budgets = ok for things like Halo, or MGS which are sure fire million sellers. But, other series with smaller sales, other series that were larger risks got the same treatment. Every bomb costs millions more than last gen. 

Lastly, the industry got in its head from the successs last gen that they were rockstars. Dev blogs labeled with unprofessional talk (they intend people to see it, this is not just some provate thing), bashing, etc. Journalism that is not even that, just opinion pieces by fanboys of their system of choice. bBasically the industry thinks it is hollywood, or the mlb.  But it is not.

You can only have so many consumers. Eventually it gets choked and someone either goes out of business, makes a niche product to pander to a smaller, more specific market, or leaves and makes totally different products. You cannot have infinite devs and infinite consoles. There are limited consumer dollars. 

Edit: Two consoles is prolly the most the market can handle with current production costs. 

Sony is making the right decision. The need to make a profit. I don't know if the PS3 is making money yet or not, but the last I heard a few months ago, they were still losing money each console. Activision's threat is very empty. First, Activision is not that big of a company. What would Sony lose? Call of Duty. Losing one franchise is not a big deal compared to all the great games out on all consoles right now. Now, if EA were to tell that to Sony, they could have a problem.

This was a pretty fun article to read....

Activision is the biggest third party.