CNN Money-The PS3 is a Sinking Ship

[Impulsivity]

I don't really think the only problem is in the PS3's court. I mean look at the 360 numbers, they took a big hit on the price per console all the way down to 199 (which is more or less the lowest it goes until you are ready to get into the death of the console 99 dollar rate) and their sales are up 7%?

If they are still sitting at under a million with a big and relatively early price drop it is pretty clear they are never going to have the PS2 ignition point where things take off and they sell huge quantities of consoles. When the PS2 hit 199 it hit Wii numbers and was the sold out console everywhere.

The Wii is the one really posting growth, if anything the 360 and PS3 are equally sinking relative to the Wii. That people are obsessing over some tiny gain in 360 sales after a HUGE price drop is kind of silly. The Wii had no drop and sales more then doubled. Most of the "huge increase in 360 demand" is pretty clearly people who can't find a Wii.

There is a light at the end of the tunnel for the PS3. Once the price drops a bit sales can pick up (probably significantly) and maybe even head towards PS2 numbers for next holiday if they can get to 250 or so. On the other hand where does the 360 go to increase more then a few % points if dropping the console to under 200 dollars doesn't do it?

There seem to be a lot of PS buyers waiting for the PS3 to be cheap to take the plunge (like a lot waited for the PS2 to drop to 199 or so to take the plunge in big numbers). On the other hand the 360 is already there, and there is no real increase in sales over last year (compared to the Wii's stellar growth).