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Price point has nothing to do with it.

The PS3 is more aimed as a multimedia device that has gaming as one of it's many features. Wich will be successful but in the long run will fail as a gaming console compared to its predecesor, PS2. This is why it will not get near PS2 sales, but won't a a total failure.

Sony should focus more on gaming than multimedia. They idea of expansion has many obstacles.