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i don't think it's selling poorly for the following reasons:

 

1). devs watch sales or to be more specific, corporate overlords of devs watch sales, and what they see is the ps3 consistently matching and sometimes even exceeding xbox sales in the same time frame.... without any games or decent prospects for games. ps3's sold in june when the first good new titles were 3-4 months away and everyone was still playing Resistance and motorstorm. What do you think is going to happen when UT3, haze, uncharted, singstar, socom, etc. hit the streets?

 2). innovation, we have it, the xbox doesn't. What true innovations has the xbox put forward this generation? they showcased UE3 in gears true, but that's pretty much it. meanwhile sony is experimenting with motion sensing, motion capture (heavenly sword), realtime motion capture (playstationeye) and real-world model scanning for ingame areas (killzone 2). These things are actually new and visual improvements from the 'old school', not to mention gear's UE3 showcase has been outdone by the UEps3 in UT3, epic themselves said as much.

3). dev support, we actually got it. see: previously mentioned UEps3, Squarenix's white engine, Crytek's ps3 division ("going deeper then most people imagine", can we say CRYENGINEps3?), konami's work with mgs4, etc, etc.

4). Bungie. after halo 3 dies down, the 360 losses it's HUGE developer to halo wars (i am extremely doubtful of this games success) and their next unnamed project, which we won't see for another year and a half or longer.

5). lackluster 360 lineup for 08 due to 07 focus. how many people, who aren't forum whores, know much of anythign about huxley? alan wake? too human?  microsofts focus on announcing and advertising this year games only does nothing but make the 360's AAA selection look as shallow as a kiddie pool. 2008 will be on us sooner then microsoft seems to think and lots of great titles may be lost to an obscure opening season in the wake of bioshock, halo 3 and mass effect. meanwhile sony has wisely choosen to hype games like mgs4, killzone 2, lbp, etc. now. Does microsoft think that the year of halo 3 marketing did nothing for their system? advance notice builds hype, where's your viral marketers?

Sony's biggest problem right now is their marketing department, they need to get heavenly sword, warhawk, uncharted, R&c,, unreal tournament and haze on television screens this season.

 notice how i've been focusing on the 360? yea, as of now, it is my honest opinion that the ps3 doesn't stand a chance against the wii as long as this trend continues. it's futile to attempt to stem a river with a cork. Besides, i own Nintendo stock, so you could say i have a vested interest in sony aiming no higher then #2. ;)