sony is a business and if they keep losing billions they wont be a business anymore.

They could sell all their franchises to microsoft and nintendo for billions and make back all that money.

Or they could recuperate their losses by not being arrogant pricks next gen and make a console people want to buy. All I'm trying to say is Sony has great brand recognition and the potential to make money on the PS franchise like they have in the past. Cutting off their gaming division over a very bad gen without trying to pick themselves up and try again just doesn't seem likely to me, unless Ps3 continued to bomb like it did in 07. MS went into last gen, lost billions and tryed again and now are doing decently (not sure how much they lost off RROD fixes.)

It doesn't look like Sony's going to learn anything from this gen. They'll keep singing the same song about how the PS3 is a "home entertainment device" or some bullshit like that while charging customers up the ass.

If this gen has shown anything, it's that the Sony empire has gotten too big and must now collapse. Sure, they "succeeded" in the previous two gens, but this one tore down the house that the PS and PS2 built. And don't try to compare the PS3 to the GC and XBox - at least those two consoles made profits for their respective companies. And don't even get me started on how badly they're about to be beaten in handhelds, what with the PSP Go and the imminent XBox handheld.

So, yeah, I agree with the OP. I hope I'm wrong about this, but I think that Sony's gaming division will be shut down by this time next year, in order for them to cut losses. Apple will take Sony's place, but the real heavyweights will be MS and Nintendo.