I would just like every person who is saying the PS3 isn't selling that badly to sit back and try a mental excercise ...
Imagine that the sales were different and the PS3 was the fastest selling game console in history and just passed the XBox 360 and (on average) outsold the XBox 360 and Wii combined in weekly sales. The Wii on the other hand is selling slower than the Gamecube and is one of the slowest selling sequel consoles of all time. How much third party support could Nintendo attract or maintain for games to be released in 2008/2009? What is the likelyhood that the Wii would be able to comeback and win the generation?
The fact of the matter is that you see the PS3 being in a different position largely because you believe that consumers will end up choosing the console with the most theoritical processing power or largest list of features. Generally speaking consumers do not care about these things and rarely take note of them except to justify their purchase after the fact. 2007 and 2008 will not see much in the way of Blu-Ray adoption and by 2009 the PS3 will be dramatically more expensive than a Blu-Ray player and people will stop seeing much value in the PS3 as a gaming machine (because its slow sales will have hurt its game library).
Sony could change the fate of the PS3 but it would require leadership and a willingness to save the console at all costs; if Sony was willing to lose Billions of dollars this year to reduce the price of the PS3 to a more normal level ($300/$400) and buy exclusive games for 2008/2009 they would stand a chance at catching up to the Wii in 2011/2012 ... I don't expect to see this happening.
