In a recent report, Ovum outlined some constructive criticism that it believes Sony should heed.

"Learn from Apple on corporate communication, and how to work with the press and media. Sony has too many outspoken executives and too little control of what they say and do. This is a challenge fit for the management of Sony Corporate.

"Getting costs under control and bringing down the price point of the PS3. There is no secret that Sony is losing money on every console that is sold. The cat is out of the bag, so Sony's hands are largely tied by now, but key will be to Cell processor manufacturing execution, and bringing down the cost of the Blu-ray drive.

"Re-establish confidence in the market. The market is losing faith in the PS3 because of the market competitiveness and poor execution from the PlayStation Group. The market needs assurance that Sony is back on top of things and in control.

"Don't be so proud of your engineering skill. Listen to market needs when designing products. Do not design products just for engineering pride. It is this trait that led to the failure of many Sony products."

However, the same report also oulined some key challenges facing Sony's competitors Microsoft and Nintendo.

Microsoft for example needs to reduce the noise levels of the Xbox 360 for it to sell through service providers and be bundled with IPTV. IPTV is not likely to fly off the shelf while the Xbox hums away with its noisy DVD drive and fans.

Nintendo on the other hand has enjoyed a great success with the Wii by focusing on the user experience and not hardware specifications. However, Nintendo needs to keep up the momentum around the controller and interface, and will need new games and compelling content coming out that takes advantages of the user interface.{moscomment}