Of course, Sony really wants to highlight the strength of the PlayStation 2 platform since the strength of the PlayStation 3 platform is virtually nonexistent. Microsoft (NASDAQ: MSFT) and Nintendo (OTC: NTDOY) are really destroying Sony with their consoles. Nintendo is doing the most destroying via the Wii, but don't discount the effect of the Xbox 360. Microsoft has built that console into a franchise powerhouse, and the company's pricing strategy has helped it to remain competitive.

I certainly hope Sony isn't forgetting the main task at hand: reinvigorate the PlayStation 3 platform. At this point, it's difficult to say what needs to be done. It's a great system, I've played it, and I know its value. But the equity in its brand just can't compete with the Wii.

Sony will need to eventually cut the price on the console, but that's going to be one bitter financial pill to swallow. For now, the electronics giant will simply have to enjoy boosting the PlayStation 2 for its own sake. I don't see much leverage in turning the new PlayStation 2 owners into PlayStation 3 owners down the line. Presumably, if you're a value-conscious consumer who takes almost a decade to adopt a console, then you're probably not going to upgrade anytime soon.

In terms of the three companies mentioned here, my thoughts have not changed when it comes to investment potential. I think Nintendo is one you may want to look at if you're interested in exposing your portfolio to video games (but be patient in case it is overvalued).

Forget Sony. And forget Microsoft if all you care about is the business of video games. I happen to own Microsoft, but it is not for the Xbox 360 franchise. Nintendo simply sells a ton of hardware and a ton of its own software. Also, it makes money on its consoles. Usually hardware is a loss leader, but Nintendo has it figured out. Let's hope Sony can eventually figure a way out of the mess it's made for itself during the current gaming cycle...

Disclosure: I own Microsoft; positions can change without notice.