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Of course, simply going up against gears probably hurt their sales as well.  There's quite a few people out there that have both systems but a limited budget.  I can't imagine a whole heck of a lot of people were looking forward to R2 more than gears 2.  Especially after the launch.  A pretty high percentage of us are irritated with R2's problems.  But anyways, my friends and I probably would have all bought R2 if it came out in March of next year.  Instead i'm the only one that bought it, and immediately listed it on amazon when I found out just how good gears was compared to R2.