1)It's debatable whether the PS3 is selling. It continues to flounder in Japan and the GBA is slowly creeping up on it in the US, not sure how it's doing here in Europe though I heard that a big chunk of it's install base is made up of launch units. You can't really compare Sony and Sega, the latter being almost insignificant in terms of size and financial clout. I'm pretty confident due to PS3, Sony has haemoraged multiple times the losses Sega ever did with DC.

2)I thought after the disappointments of Lair & Heavenly Sword people would be more cautious before deeming unproven games AAA before release, guess I was wrong.

 reported for extreme fanboyism.

Sorry if that sounded harsh, but when people say wii is a mad that pisses me off because there is no logic.

I love it when folks say the Wii is just a fad when just 25 years ago gaming in general was just a fad. It's going to be funny when folks who stay in denial about the Wii's success see's it keep steaming on this generation.

In my eyes this is an act of desperation. Sony thought they could push the ps3 on the name of playstation alone. Now they find that the stuck their foot in their mouth. This move will bring some sales to the ps3 system but the thing that keeps sales going on is 3rd party support. The Wii is getting more and more 3rd party support and the 360 has quite a strong backing themselves.

Personally, I thought discounting the DS was foolish based on price and Nintendo's history was a foolish move by most analysts; they choose the PSP because it was more powerful, targeted an "older" audience, and included a movie format which was assured to be all the rage.

After TGS 2005 I was positive that Nintendo found a way to regain a large portion of total market because everyone would want to try it, it could be used to create new and unique gameplay experiences, would become the staple of the social gamers diet, and (if inexpensive enough) everyone would buy one.

After E3 2006 it became clear that Sony had lost all chance of regaining the dominant position. The general public choose the Playstation and PS2 because they were the systems which "Had the most games" and "Had all the great games" when the PS3 was announced to cost $500/$600 I realized that this would all change; it would take a long time for the system to hit a mass market price point which means sales would be sluggish and third parties would abandon the system long before consumers would see the price as reasonable.

Honestly the only people who still see it as possible that the PS3 will become dominant choose the PSP to destroy the Nintendo DS and thought that the Wii was going to sell worse than the Gamecube ... These people do not understand the game industry and if they are paid analysts they should be fired.

PS3 still has chances but those percentage of winning drops everyday. Especially when Nintendo have an advantage in marketing over them. And that is being able to start the 8th generation early. Sony most likely won't have this opportunity as PS3 is something they have to support or they will have mass losses.

Meaning PS3 needs to kick up the pace and quickly. Otherwise going into 2008 both Wii and 360 will be ahead of it and with faster paces. Then all they need to do is announce their 8th generation consoles in 2009 and release in 2010. Doing this could kill any chance of PS3 being able to get up and go. Sony on the other hand wouldn't have that same opportuninty unless they are ready to accept massive losses and loss of brandname.

PS3 needs to finish off with good sales. And then needs to start immediately in 2008 with good sales and continue them. This would totally obliterate that early marketing and 8th generation start from MS and Nintendo as it would be in vein. This whole waiting til 2008 or waiting til 2009 for PS3 to start selling well is no longer an option. Needs to start soon or MS and NIntendo will completely disturb the market to where Sony can't catch up.

Yes ... yes it can.

Well I'm pretty sure Red Steel & RRR have outsold nearly every PS3 title out there including 1st party. RE4 is going brilliantly and again beats the crap out of most PS3 software. In Japan DQS has outsold all PS3 software, again 1st and 3rd party(not 100% on this but pretty sure. Your argument is lame and if 3rd party sales suck on Wii they're all but non-existant on PS3. I think you also have to take into acount that there just aren't many good 3rd party Wii games out there, people can't buy what isn't on shop shelves.

 360 however is the Daddy when it comes to 3rd party software at the mo.

The ipod is a fad and its still around.

Well a major optamist could conclude that it is possible for Sony to win but let me lay down the conditions Sony would have to meet within the next year.

A massive massive price drop, no not just a price drop to match the 360's pricepoint but to match the Nintendo Wii's price point. I'm talking a price cut to around 279CDN/USD to give it an edge against the vastly superior 360 software line-up and the Nintendo Wii's innovative hardware.

A couple major hits, no not just MetalGearSolid and KillZone2. I'm talking major hits like FinalFantasy13 a new KingdomHearts another GTA , GTA5 , ResidentEvil5. But half of those are multiplatform Sony needs them to be exclusives. A strong third party and first party exclusive line-up is needed pretty quickly to give the PS3 a much needed boost in the face of Master Chief and Mario.

A massive ad campaign and possibly the release of a new hardware model. This hype is needed to bring the PS3's deadly image out of the quagmire.

 So after a massive price cut , drive for exclusive titles and an expensive ad campaign were talking a possible slim victory for PS3. Because even if Sony met all of those requirments they would still be up against the established user bases of 360 and Wii which would continue to be successful regardless of Sony's success. Lastly the costs Sony would have to pay to acheive a comeback would make a victory more of a loss for Sony.

 In the end its in Sony's best intrest to cut their losses and accept defeate. Just keep supporting their platform and hopefully they will be able to match GameCubes success last generation!