You might want to go back to square 1 and examine your own assumptions.
1. Can a machine as expensive to produce as the PS3 compete price-wise with a machine as inexpensive to produce as the Wii in a broad-audience scenario? Remember, a large percentage of consumers are very price sensitive.
2. Can the PS3 continue to remain price-competitive with standalone Blu-ray players as they begin to rapidly drop in price? For Walmart shoppers there already exists a $160 solution. This means the PS3 can no longer count on being the cheapest Blu-ray player for those primarily interested in watching HD movies.
3. How far into the next generation can we get before it becomes impossible for an underdog, regardless how determined or talented, to still win that generation even though most customers have already made a decision and purchased at least 1 next gen system?
