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Kutaragi admits "decline" in Sony's hardware capabilities

On the heels of Sony's decision to delay the European launch of the PlayStation 3, Reuters caught Sony's Ken Kutaragi in a rare moment of straight talk:

"If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true."

He left himself some waffle room there with that "I guess" and that "might be" language, so we'll put it to you, dear reader. What's the over/under on the chance that Sony's hardware capabilities have been gaining strength?

[Thanks, Babylonian]