That's terrible news.... the question is how much of the failures of Sony's other businesses going to cut into its operations at the Playstation division ? It's going to take Sony a long time to get out of this hole. They are virtually "broke", one has to wonder if Sony is going to be able to afford high grade technology or make major cuts for their next system.....
Sony lookin like Sega in 2001..... SAME problems with products and management, just Sony is in worse circumstances. If they don't turn to a profit and win on the PS4/Orbis, Sony will crumble and you can take that to the bank.
In order for Sony to get out of this they have to make record profits for at least 4 years straight uninterrupted, in a fragile U.S. economy & given Europe and Japan's economies in the toilet right now seems like a long shot.....