"[The PS3 is] a disaster on many levels ... I'd say, even at this late date, they should just cancel it and do a do over. Just say, 'This was a horrible disaster and we're sorry and we're going to stop selling this and stop trying to convince people to develop for it ,
A quote from Valve boss ^^
That's pretty blunt, but lets be honest. It is a disaster financially for Sony and hurt the Playstation brand.
Several years later Sony is still taking huge losses and they can't sell it for as much as they'd like.
And don't forget developers were threatening to pull support if they didn't drop the price. Developers win while Sony continues to lose.