From what I read in that article, it sounds like Sony was going for a model of making money on the console and little/no money on the games. (The 3DO model.) Now they want to lower the console's cost and increase the cost of the games.
I don't buy any of that. The high console cost was due to Blu-Ray.
Can't Sony just make people pay for a $100 gizmo that allows you to play Blu-Ray movies on your PS3? Then, after a year or so, provide an OS upgrade over the net that allows all PS3s to play Blu-Ray DVDs without the gizmo?




With Sony dropping the price of the console in Japan and higher royalties and game prices, it sounded to me like they are pushing the costs back onto devs who are passing it on to customers. The link says:

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