- 31 Jan 08, 14:35 GMT
First, the good news: Sony's games division has made the first profit in two years.
Here's the bad news: Sony is cutting its sales goal for PS3 to 9.5 million units for the year from 11 million.
So is PS3 succeeding or not?
It depends on how you measure it. In comparison to the Wii, the PlayStation is a failure for Sony. Wii sales are stronger, faster and despite predictions of being short-lived, show staying power.
But compared to 360 sales, it may be good news for Sony. Xbox 360 sales are slowing - and worryingly for Microsoft they are slowing during a period of arguably its greatest games line-up.
So what does 2008 hold?
I don't believe titles like Haze or Metal Gear Solid 4 will shift that many more PS3s. But I do think Blu-ray's impact will begin to bite Microsoft.
Few observers believe that HD-DVD will ever be anything more than the second placed finisher in a two horse race. And the growing library of Blu-ray titles, coupled with the PS3's capability to take on new features, makes the console an ever more practical choice as a next-gen disc player.
Throw in the console's ability to connect to a PSP remotely - and remember sales forecasts for PSPs are positive - plus the growing media hub functionality, and PS3 may not be the lame duck some thought it was 12 months ago.
Sony boss Howard Stringer believes PS3 is now "out of the woods".
But let's not forget the R&D costs associated with the PlayStation 3 - Sony are many, many years away from recouping the costs of that development effort into the Cell processor and Blu-ray technology.
Until that happens, the PS3 is still camping in the forest.
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