Hirai cites the dropping costs of components used to make the PS3, as well as the removal of chips related to backwards compatibility, as examples of how the console is becoming cheaper to produce (and therefore less of a detriment to the company's bottom line). Hirai noted that the declining cost is "in line with what the company had expected." Not explicitly stated but certainly important are the titles expected next fiscal year: LittleBigPlanet, Home, Final Fantasy XIII, and the still-exclusive Metal Gear Solid 4.
Previously, Sony stated that it had sold 1.2 million PS3s since Black Friday -- NPD figures for December should reveal how that measures up to competitors. Microsoft recently stated its belief that the Xbox 360 is "on track to register the biggest year in video game history," while the Consumer Entertainment Association predicted industry growth to continue, albeit at a slower pace than last year.