" It always seems presumptuous to sound a death knell for an enormous company. So perhaps this is more a bell closing round seven of a fight, but on the gaming front, Sony is looking bad. Really bad. And because of the company’s overall financial position, it will take far more than posturing to keep the console division in the game at all.

On the largely disappointing recent holiday retail front, and, indeed, in the face of the entire economy last year, the year’s results, Sony was hurting, according to NDP Group’s data. The top two sales spots were Nintendo’s Wii and DS. Microsoft’s Xbox 350 was a solid third place. But the Sony PlayStation 3 couldn’t even beat the million unit mark, although the PSP just squeaked by into that territory.

But it can’t catch up to Nintendo and Microsoft because the console is just too flipping expensive compared to a Wii or Xbox 360. Such features as built-in Wi-Fi and Blu-ray and even free online gaming are nice, but consumers clearly don’t care. Regular people don’t view the capabilities as compelling enough.

Unfortunately for Sony, it probably doesn’t have the financial wherewithal to really compete on price by dropping prices to a competitive level. The company may report its first net loss in 14 years this spring. Shareholders will clamor for restructuring. Unfortunately, CEO Sir Howard Stringer is running into strong opposition to change from old guard management.

Sony’s is also in no financial shape to develop a new system. By the time it is, Nintendo and Microsoft will have moved ahead to something grander, leaving the PS3, and Sony itself, in the dust. "

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