@markers
Sony is in a bind. They need to reset the market. A small incremental update to the HW will not help. A small update will make the old PS3s obsolete, and at the same time will fail to create any excitement in the market. A pure lose-lose.
So to achieve a market reset they need a big release. Something different. Something exciting. Something that costs a lot to develop. Something that will cost more to manufacture. Something that no one in the market except Sony has any incentive to see succeed.
Prediction made on 11/1/2008:
Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox, 9M PS3