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PLAYSTATION 3 (PS3)
at 3:03AM PST on October 30, 2007.
I see folks suggesting that they either pull out of the Games market or drop the PS3 and bring out a PS4.
Both suggestions are extremely unlikely. Although if a manufacturer was having similar difficulties with a product it is very likely they would can it and move on but this scenario is unlikely to happen with Sony.
Firstly they have a huge reputation and this would be serverely damaged across the Sony division, secondly they will make money and this division even with its current problems will become very profitable probably reversing the trend we see today of the other divisions propping the game division.
It is probably true to say that they expected to be in a better position today than they are but 2 years down the line it is very likely the console will be holding its own.
The talk of being second to Microsoft often sparks this dire need to pull out but I suspect the longer life spans of this generation and the better penetration due to the Living room space and the Wii effect will see all three current generation consoles benefiting. Sony who should eventually starting pulling away whether this will mean catching the competition is another story.
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