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Think it all comes down to price. Sony need to bite the bullet and go sub 200 GBP to make the PS3 a viable option for the masses. Sony must be competitive with the Ms and Nintendo price points or they will be marginalised.

Unfortunately for everything Sony has done right this gen they have done two things wrong.

Also Sony may have misjudged the market mood for Blu Ray

Four of my friends have PS3's none have ever used them to watch a Blu Ray movie. This despite getting Casino Royale sent to them free from Sony.