Doesnt really matter.. no game even a game meant for the japanese sells well in japan(X360 terms). We saw a suprise boost in sales with Ace combat 6, but its back at 8k.. should continue to drop..

And dropping the price twice by 100 dollars and adding in a completely cheaper SKU

MS has dropped the price by 50 dollars most, with its other SKU what 30 bucks?

If sony ever wants to stop bleeding money, they cant drop the price like they did.

I think Sony realised they HAD to try and match 360 sales this holiday season - hence the price cuts/new models.

So they are tracking better than the 360 did last year - but its pretty much a requirement.

I agree that you won't see truly awesome PS3 software hit until next year - Killzone should be interesting.

...

But to so "no significant exclusives" I think is wrong. LAIR, HS, R&C & Uncharted are all significant - they just haven't set the charts on fire.

And that's the real issue Sony has - they can't afford to let the PS3 turn into the next PSP - hardware selling well, software never to be seen.

On the other hand, software for the 360 is selling REAL well. They have captured that "core" hardcore gaming market (ex-PC gamers) that buy just about every decent title that is released. The 360 will continue to have amazing attach rate - and this will continue to push publishers towards the 360.

...

So the long-term challenge for Sony is two-fold:

 - drive hardware sales

 - drive software sales (more important)

If software continues to "bomb" (even in Japan), who knows what will happen. So far, sales are down 60%-70% compared to the same titles on the PS2 (even when comparing with similar install bases). Lets give them the benefit of the doubt this holiday season - and see what the numbers look like next year.

The Market is really unpredictable. =)
I still think, that Ratchet will gain in sales during Christmas, because it`s perfect gift for kid, so and SMG, but Ratchet on PS3, which has blu-ray, that`s why PS3 is also perfect for FAMILY.

Why Family wouldn`t buy PS3 this Christmas, which has Blu-ray, Free online, and some great games?
Most people don`t buy 10 games per month, so Warhawk, AC, HS, Ratchet, Folklore, NGS, Uncharted, UT3, Lair, Haze, Cod4, would be really enough for this Christmas.

Though, x360 bundled with 2 games, while ps3 40GB none games, and only 150$ more costing ps3 has 1 game in.
PS3 40GB bundles with Ratchet or Uncharted this Christmas would be unstoptable, imo.

As for Japan, it`s only LO vs GT5:prologue left, about other titles i am not sure will japanese be interested in them.

 The main problem with Playstation 3 and south European countries (atleast those south-eastern) is that there ain't a modchip for PS3 (that combined with not-so-standard media format). PS2 was the ultimate console there mainly because of the flawless modchip and ease of pirating games.

 The problem with Xbox 360 in these countries is the fear of RROD on the modified console, which basically means loosing the warranty.

 While Playstation is the synonym for playing games there, the word about Wii is spreading more and more, especially due to easy modability.

I completely forgot about GT 5 prolauge, there could be a *slight* possibility the ps3 may outsell the wii in japan for the holidays.

Those are all great Family-orientated games, which makes PS3 perfect Family console... not? 

I can see mother and daughter laughing and having a good time fragging each other in UT3 or talking about how they love to play warhawk with the whole family. Very similar to Mario party.

I mean,
Ratchet perfect for Kids and good for teens.
Uncharted, AC, HS, Lair, Warhawk - perfect for teens.
UT3, Haze, Cod4 - good for teens and perfect for older people.
Folklore, NGS - for hardcore gamers.
GH3 for everyone.

The main FAMILY thing is in Blu-Ray player.

You can make that same exact generalization about any console! Anythings good for a family then. The idea of a "family" game system, is that it brings the family toether and they play together. Im sure they all already own a dvd player.