In a recent interview with Reuters news service, Sony Computer Entertainment president and CEO Ken Kutaragi was quoted as saying, "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." This statement was apparently made in response to questions related to Sony's recent announcements of launch PS3 unit reductions and a launch delay in Europe.

Given how concerned Sony must be at the moment with PR, given the already overwhelming negative press the PS3 has received, I can only think of two possible explanations for this sort of quote. Either a) Sony is trying to appear more humble to the media, or b) this quote is taken out of context. Either is realistic, but I think it's probably out of context. Do you really think SCE would essentially badmouth themselves this close to a new hardware launch?