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I think price is easily the most important issue when talking about the sales of the PS3.
I think the price cut showed that there is a good amount of interest in the platform, it just doesn't have a mass-appeal price point, and thus has been turning a lot of consumers away. There is no doubt it hasn't been selling as expected, but with the system not even being a year old as of yet, I'm still dumbfounded some call it a failure.

I still believe people should wait until the popular PS franchises such as MGS4, FFXIII, and GT5 debut before judging its overall success. New IP's are important, but with these it will be interesting to see how many of those PS2 owners make the switch to get their favorite franchises sequel.