Most of Sony's products don't even compete with Microsoft's. Games consoles are a very small percentage of sales of both companies.
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The playstation helped keep Sony afloat the in the past years. They wouldn't scrape a portion of their company that makes more than 40% of their money.
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The Gaming portion of the company carries 56% of Sony's profits. lose gaming you lose the company it's as simple as that, they already cut profit predictions by 40%.