In a recent chat with The Times UK, Activision CEO Bobby Kotick says that developing for both the PS3 and PSP isn't really paying off on their end. Citing expensive costs for development and waining popularity of the consoles, Activision cannot promise continued support into 2011. Needless to say: this is not so good news for Sony.

They've been losing their exclusives left and right since the beginning of the current-gen console wars, and they don't have the ability to spit out first party titles monthly with a mustached man in red overalls or a prefix of Poke'. That being said, Nintendo has been surviving mainly on first party titles since the 'Cube; but can Sony make it with a similar business structure? I don't think so. Sure they've got a handful of great first-party franchises, but their games are what they are and really can't branch out into new titles. Kratos Kart? I think not.

And some of Sony's recent business moves make me question if they're just setting themselves up for failure. Recently browsing through a Gamestop preorder book, I couldn't help but notice the three pages of DS titles that are coming soon-PSP had half of one page. So is the best move to release an overpriced redesign that abandons the disc current users have a whole collection of? In the words of Seth Myers from Weekend Update: REALLY?! Really Sony, you're alienating the bulk of your fanboys. They aren't going to be willing to rebuy and download games they alreadly have on UMD. And not announcing a price drop at E3 after market analysts were practically begging you to? I know your home electronics division is suffering also and you don't want to go into the red any more then you already are; but at the same time you don't want to go the way of Sega and the Dreamcast into gaming obscurity.