Sony’s second quarter was another sorry one marked by the company’s fourth loss in as many quarters. Still, it was smaller than expected.

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So much for Xbox 360’s game console exclusivity on Netflix streaming. This morning, the DVD-by-mail pioneer said that beginning sometime next month, owners of Sony’s PlayStation 3 game consoles will be able to stream movies and TV shows from Netflix.

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“It’s clear that the quality of iPhone games is eclipsing its console counterparts, and that’s even more acute when you compare it against the prior generation.” That’s what ngmoco co-founder and Electronic Arts alum Neil Young said of Apple’s iconic handset at the Game Developers Conference in San Francisco earlier this year, and it’s worth reflecting on a bit in light of a new report from Bernstein Research analyst Toni Sacconaghi that claims the iPhone OS will soon create pricing and customer migration pressure for traditional gaming platforms.

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Nintendo President Satoru Iwata likes to say that game console price cuts aren’t the cure-alls many believe them to be. “People often talk about the price cut as if it’s an almighty weapon,” he said this past summer. “The fact of the matter is what a price cut can do is rather limited.” But Nintendo is cutting the price of its Wii videogame system just the same.

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Netflix is headed to the iPhone–at some yet-to-be-determined point in the future. Asked by Reuters if he’d ever consider a partnership with Apple, Netflix CEO Reed Hastings said he would, but only after the company had secured its foothold on videogame consoles and elsewhere.

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Who will win the gaming console price war of 2009? Consumers. Two weeks after Sony lowered the price of the PlayStation 3 to $299 from $399, Microsoft did the same for the Xbox 360 Elite, slashing $100 off the price of the console. In addition, the company cut the price of its now discontinued Xbox 360 Pro console by $50 to $249.99, while supplies last.

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The PlayStation 3 price cut is a rumor no longer. Hoping to bolster sales in advance of the holiday shopping season, Sony Tuesday announced a new slimmer verison of the game console and slashed $100 off its price.

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About the best thing to be said for Sony’s grotesque financial results is that they came in smaller than expected. The company’s 98.9 billion yen ($1 billion) loss for the fiscal year ended March–its first net loss in 14 years–wasn’t nearly as bad as the 150.0 billion yen ($1.57 billion) figure it had predicted in January or even close to the 173.8 billion yen ($1.8 billion) analysts polled by Thomson Reuters had been forecasting.

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Is the Wii juggernaut finally slowing? Perhaps. In March, Japanese sales of Nintendo’s wildly popular game console fell below those of rival Sony’s PlayStation 3 for the first time.

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So those rumors of a PlayStation2 price cut? True. Rumors of a similar cut for the PlayStation 3? Not so much… Confirming recent speculation, Sony this morning said that it’s dropping the price of the PlayStation 2 from $129 to $99.99 as of April 1. But it aggressively dismissed reports of a PS3 price drop as false.

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“Our love affair with the iPhone began by simply touching it. This was rapidly becoming the most important device I had ever owned, it was an all-encompassing, complete device. And I knew that that device was going to enable incredible things for gaming.” That breathless and swooning introduction aside, ngmoco co-founder Neil Young’s keynote address at the Game Developers Conference today was a noteworthy one in that it really heralds the arrival of the iPhone as a gaming platform.

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The days of the traditional gaming console are coming to an end–according to entrepreneur Steve Perlman, anyway.

Later today, Perlman–a former principal scientist at Apple and the founder of WebTV–will officially unveil OnLive, the online service with which he hopes to upend the $46 billion world-wide videogame market.

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So the seemingly unfailing demand for Nintendo’s Wii? Failing. Though Wii manufacturer Nintendo posted a 21 percent gain in quarterly operating profit on brisk demand for the videogame console, it slashed its forecast for full-year sales of the device.

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Microsoft’s chief software architect Ray Ozzie has finally published the sequel to “The Internet Services Disruption,” the 2005 potboiler of a memo that charted Microsoft’s (MSFT) better-late-than-never software-as-a-service strategy. It’s called, intriguingly, “Services Strategy Update April 2008” and it describes in numbing detail Live Mesh, Microsoft’s ambitiously late entry into a rapidly growing cloud-computing market.
Live [...]

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