According to this Bloomberg.com report, Sony isn't doing very well. Analysts predict Sony will probably post a 70.3 billion yen ($658 million) loss in the quarter ended March 31, the biggest in two years. Despite cutbacks, thousands of layoffs, and other cost-saving efforts, the outlook appears bleak. This is because of a weak US economy and falling electronics prices, especially in the TV, DVD, and cell phone business. This makes the PSP all the more valuable to Sony. They hope it becomes the next iPod. Sounds like they're grabbing at straws to me.