NJ5 said:
But in that case, the same will happen to the PS3 and his argument becomes stale too...
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The Xbox wasn't available for sale 6 years after launch. The PS2 is available for sale right now, and still selling well outside of Japan. So while I don't think core gamers will really consider the PS3 a 10 year product, Sony will likely be selling them with respectable numbers up to and through their 10th year after launch. It's *extremely* unlikely that MS will do so with the 360. More likely, they'll release a new Xbox in 2011 or 2012 and cease production of the 360.
It had a price drop before release. As launch approached, it was obvious to Sony that it would not sell at the price they wanted, so they gave it a significant price drop in Japan in an effort to save face and have respectable sales numbers there. They didn't want Nintendo to run away with Japan.
Oh, and Sony cannot compete with Nintendo for first party development muscle. Nintendo is huge and produces an insane amount of software. It has been their bread and butter while their hardware was struggling.