sorry the source should be videoandcomputergames.

@kspraydad,

I just don't see how their analysis has anything to do with the PS3. Seems to be more related to the rest of their consumer electronics business. I know that they specifically mentioned it, but without elaborating, it feels like a passing reference.

@Laoldar,

On a micro basis SONY's price movement is a combination of China sniffing around the Japanese market, strong US sales results, a Dubai investment firm buying 5%+ of Sony shares.

To me that was the background buzz to the statement that this firm believes the PS3 is near the end to its 'negative factors'

On their site you just get a sound bite and need to have password access to get the full note:
We are increasing our earnings forecasts for Sony and raising our recommendation from 3 to 2. The shares are trading at a PER of 17.5x our revised FY3/08 and FY3/09 EPS forecasts, the lowest level since 1997, and we believe there is now a clear sense of undervaluation in the share price.

@kspraydad,

This article is based around the idea that Chinese investors are buying up Japanese stocks...this could lead to over-pricing there as the Chinese stock market is widely considered to be in a bubble, so this could just be spill-over.

Too bad that there wasn't any reason given for why this analyst thinks that the PS3 will stop losing money. Without any analysis provided, I worry it's yet another analyst (who isn't familiar with this particular indsutry) misreading the videogame market.