He does have a point though. Some of the people in this thread are just........ugh! 

I swear some of you are closet commies.

Epic is having no trouble making games, Insomniacs is having no trouble. The good devs will do well while the mediocre ones will fail, its always been like this. Free market people.

 That's a unique take on defending a failing onsole which I'm sure you would have been using its superiority had it succeeded to justify your hatred for the Wii and 360.

@choir:
Do you know the PS3 is overly complicated?Only Ubi said this and said it very vocally but then said something else and then something else and where being 3faced but anyway Sony does give help if you having trouble deving for the PS3 they send a guy to your studios and he/she teaches you how to program the Cell fast and accurately basicly its a quick ticket to know how to dev the Cell by next year the difficulties will be gone because they learned how to dev it.

Commies? That doesn't even make sense...

Anyways, it seems like a lot of people are going overboard on this one. The question was about whether or not devs and retailers are taking a bath on the PS3, and while I know a lot of software isn't going to meet initial expectations, the 360 multiplating seems to be helping that one, and retailers will always do fine as long as something, anything sells.

I think sony's strategy is not killing the big devs and the big stores... in fact those from the beginning of the generation where basically testing waters on every console... the real issue is present on the small devs that without real support from the manufacturers or a big publishers are not able to create games for those expensive to develop consoles... so the have two choices to develop a low quality game for PSN or XBA... or develop for the "cheaper" consoles... being those the DS and the Wii... this in fact will jeopardize the PS3 mainly in the long run... because those low tier developers with low budgets are the ones that create the games that fills the system's libraries... the PS2 success was based on tons and tons of games from every developer on the globe.. from the big ones and even from the small ones that with a really small budget and a great idea created some really good games...

Also... the entry price for developing on the HD consoles is affecting big budget developments in the PS3 because most 3rd parties are now forced to port their games to the xbox360 in order to reach a greater userbase... This year and the next one we are going to see all the big games on the PS3 that were started before the launch of the system... but after that first wave is done... I think we are going to see a Gamecube-esque library where the majority of the games will be ports from other consoles (mainly the xbox360) and a few really good games develop by 1st and 2nd party studios...

Small desvs with limited budgets can make PSn games, so there goes that.

Calling all Cars cost 1 million took one year to make.

I admit that I know nothing about Sony's developer support, though I'm fairly sure all three major companies offer decent middleware and support for said middleware, but I believe that the Cell architechture is, at the very least, far less conventional than the 360's (the 360 being built primarily on PC hardware), and thus, for most developers has a steeper learning curve.  Considering the number of posts I've seen from Sony fans saying that the PS3 has yet to show it's true power, as the Cell is propriatery, etc. etc., I think, at least in the internet community, it's agreed upon that the PS3 is more difficult to develop for than the 360.  This also was initially shown in  the fact that straight ports from the 360 to the ps3 in first-gen fairly prominent titles sometimes took significant hits in fps, etc.  How far this development difficulty will take the ps3 is an issue of debate - is it actually hugely more powerful than the 360 and that power just hasn't been properly exploited yet?  There are some pretty legit arguments concerning memory bottlenecks in the architecture limiting its raw processing power, which would also make development for it more difficult.

 To be fair, the Wii isn't the easiest console to develop for, because the technology for motion control is so new.  This is at least part of why many 1st gen games had spotty motion detection.  There are a variety of middleware tools out to help make motion detection easier, but it's a work in progress.  I'd argue the difference between these two situations is that with the Wii it was rather difficult to avoid, because there was no easier alternative that provided the same functionality, whereas with the PS3, I believe there was.  Perhaps just my opinion, though.