Playstation 3’s Death Spiral

Is the Playstation 3 doomed? Given the continuing spiral of reduced sales of the console, and of games that ship for the PS3, the situation has never been more dire for Sony’s premiere gaming console.

Sony’s PS3 is in dire trouble. It’s notoriously difficult to program, which doesn’t endear it to developers. Games don’t sell as well on the PS3 as other consoles, which makes publishers skittish. Sony’s flagship console needs a big price cut, but it’s unclear if the PS3 can be cost-reduced enough to support it, given the continuing high cost of its components. The company may have no choice, if it wants to remain in the game.