and do know that there is no way in hell that they exhausted the profit gain form the ps2 and the ps1... remember those, like the 2 most successful consoles of all time. they just invested a lot in ps3 and have not turned a profit for the PS3, not 4.7 something bill loss for the entire company. Also that is 1 division in within Sony that includes more than the gaming division. So in short uhhh they never had anything to worry about, just need to make profit off of the ps3, which will happen soon.

Revenue is nothing, cash is king and the profits are what matter.
They'll make it out of this but will be weakened for quite some time and will depend on some fairly ingenious and successful business to get back on their feet fully.

As a company they should be fine, most of the cost cutting measures they have done in the past are only now starting to take effect. You will start to see more of an effect next year as well. They should make a profit from FY2010 and on

Being big is not going to save them. In fact I think they'll get a lot smaller in an attempt for profitability.

Currently they are surviving purely because they can borrow money at fairly good interest rates. However they already had a downgrade in their credit worthiness:

http://www.reuters.com/article/rbssConsumerElectronics/idUST28190220090527

This means two things... first it should be getting more expensive for them to borrow money (as investors see them as more risky to lend money to), second if they keep losing money, that can well result in another downgrade.

They're also getting hurt by the stronger yen, particularly against the U.S. dollar. As the U.S. dollar isn't expected to go up significantly anytime soon (due to low interest rates in the U.S., and the fact that Japan's interest rates can't go much lower than they're at already), this will probably continue to hurt them for the foreseeable future.

Finally for sales themselves. Sony is not in a good position competitively. They don't dominate any single significant market, having lost TVs to Samsung and gaming to Nintendo. While some people are expecting a real economic recovery soon (I'm not, I don't think it's a sustainable recovery), even those optimists are forecasting a very slow recovery where consumers will continue to be hurt by unemployment and low wages.

So frankly, I don't see many positive developments for Sony's situation. They have hard competition, a suffering customer base and bad exchange rates hitting their revenue directly. Whether this will result in a bankruptcy or not, depends on their actions and on how bad the economy gets from here on.

profits from PS and 2 are long gone. They lost those prfits and are way in the red

No they arent,  the PS division is still about 1.5B in the black

That's just totally wrong. In the last quarter they had 1.66 trillion yen in revenue, which is $18.59 billion.

Net income was a loss of 26.3 billion yen, or $294 million.

http://www.sony.net/SonyInfo/IR/financial/fr/viewer/09q2/slide/image/03_image.jpg

The thing about GM and chrysler is they had plenty of time to change and move away from gas guzzling machines, but they didnt.

I can't see this happening for awhile, if at all, for several reasons:

1. It is a sign that the Playstation brand is a failure, in some regard, and Sony is like Sega in that they drop support for a console they make.   The PSP is tied to the Playstation brand.  As of now, the Playstation brand still carries weight, and has resulted in there being a pool of customers who are loyal to that name.

2. It means that Sony failed to get a foothold in the space that Apple competes in with its iPod.

These two mean Sony isn't likely to drop the PSP.

These threads get more ridiculous by the day. A thread of an insecure xbox fanboy?.

A good question would be why are Sony expanding so much in certain areas and spending so much money on new product lines.