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Price is the major reason but the technology they chose to use also shares a large amount of the blame. The Blu-Ray drive delayed the console for a year while the system's architecture has lead to delays in games. The fact that we still don't have Final Fantasy 13 and a full version of Gran Turismo 5 says a lot.  It also doesn't help that they chose not to secure some key third party exclusives when it was still viable for them to do so.