Following the release of its 2007 fiscal year results, Sebastian says that Sony now appears less focused on console market share and less likely to introduce a PS3 price cut during 2008, instead shifting its PS3 focus to online services and segment profitability.

“During its earnings call, Sony management indicated the company is now more focused on achieving profitability in the PlayStation segment and rolling out online services (e.g., PlayStation Home) rather than chasing unit market share vs. Microsoft and Nintendo," Sebastian wrote in an investor note.

“Importantly, management comments also suggest that a price cut is less likely on the PS3 this year, at least in the near term.”

On Wednesday Sony announced that it hopes to sell 10 million PS3s worldwide this fiscal year, an eight percent year-over-year increase. Having trimmed its PlayStation division losses from 232.3 billion yen in FY06 to 124.5 billion yen in FY07, the company said it expects its games unit to report an operating profit for the year ending March 2009.