While the PS2 was a big hit, the PS3 is costing them serious money as it wallows in third place behind the highly successful Nintendo Wii and the Microsoft Xbox 360, which while not being as good as the PS3, is proving popular because of its low price and broad array of games.
The PS3 has never made a profit despite Sony Computer Entertainment price gouging Australians for several years with unit costs that have at times been almost double the cost of the console in the USA.
Now Sony's pricing strategy is set to bite them on the backside unless Sony can deliver a low cost PS4 that is as much a gaming console as it is a home content gateway and player.
For a long time Sony has been telling consumers that the big difference between the PS3 and the Nintendo Wii or Xbox 360 is the inclusion of a Blu ray player however this does not wash anymore.
Now Blu ray players are down to $200 and the PS3 is looking very tired, expensive and noisy.
When the PS3 was launched, Sony deliberately designed it so that it was not backward compatible. Instead the Company tried to get two bites of the cherry by continuing to sell the PS2 as a low cost console and the PS3 as a premium console, thus forcing die hard gamers to buy a new Sony PS3 console and new PS3 compatible games.
Combined the two consoles have sold close to 265 million units worldwide however the Sony gaming division is still bleeding big money. Last week Sony announced that it will make over $3.8 billion dollars in losses with a big chunk of those losses being made by the gaming division.
Very soon they will have no option but to introduce a firmware upgrade that will allow PS2 games to be played on a PS3 in an effort to generate sales.
