NEW YORK (Dow Jones)—The new videogame-console war is firmly underway and Sony Corp.'s (SNE) PlayStation 3 looks like it is losing its once-dominant position in the $25 billion industry.

Packed with analysts and those pesky hard numbers, this Dow Jones story doesn't paint a very pretty picture for the Playstation 3, but it is mostly a rehash of what we already know: The PS3 isn't doing so great out of the box, but will likely stabilize and do just fine given enough time.

What we didn't know, but I certainly suspected, is that Sony still plans to stick to their plans for the console, including not dropping the price for another few years and adding music and movies to the Playstation store.

Although analysts say price reductions would benefit PS3 sales, Sony isn't likely to make any price cuts for at least another two years, said Kimberly Otzman, a spokeswoman for Sony Computer Entertainment America. She noted a similar time frame for lowered prices for the PS2. "We probably expect the same for PS3," Otzman said, adding that while the console's price is higher than competitors', it comes completely packaged so consumers don't have to buy extra equipment or attachments." Meanwhile, Sony has said it is looking into expanding into music and movie downloads via the PS3, which comes equipped with the new high-definition DVD format - called Blu-ray.

Sony had a lot of momentum from the PS2 going into the PS3 and I think they bet on that momentum getting through this predictably harsh launch, the question is whether it will be enough to carry them over the hump. Brian Crecente