Sony expected a lot of PS2 owners to go out and show brand loyalty and purchase a PS3. What Sony failed to realize was that gamers were happy with their PS2s. The promise of better graphics and HD didn't sway PS2 owners to buy a PS3. Actually, one of your points was right on the money. At $600 the budget conscious consumers weren't going to purchase a PS3. I don't know where Sony came up with their numbers. If you look at the PS2 it took off when the price point was $199 in 2002. It took two years for the PS2 to drop to $199 but the launch price was $299. The PS3 has seen similar price drops in its first two years just not as drastic. The PS3 launched at $599 after it's first year we saw Sony remove components to drop the price of the PS3. The problem was as expensive as it was and still is to manufacture the PS3 they had to take a hit to gain market penetration. The Wii release hurt Sony as it took away market share that Sony banked on. The Wii of course has become a phenomenon. Sony never expected the Wii to succeed and when it did Sony had to go back to the drawing board. Sony has gained some momentum but not as much as their sales are beginning to waver again.
Three things lead to the slow start of the PS3 .
1) Price point too high. ($599 was insane.)
2) The success of the Wii (Very unexpected by Sony)
3) Games were at a premium for the first 18 months of the systems existence. (Out of it's launch titles only three were good, delays on highly anticipated games such as Heavenly Sorwd, Lair and other, turned fans away.)
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