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d21lewis said:
The PS1 was the hands down dominant console of the 5th generation. The PS2 may very well have been the overall greatest console ever made. Over 10 years of domination, and the PS3 is still trying to find it's niche. Damn right, Sony beat themselves. There was no other console that had the notoriety and acclaim that Sony's Playstation brand had. How did it go so wrong so fast?

 

Quality compared to price.

Non-essential features (Luxuries) which increased the price.

Losing exclusives (And not just a few, almost every single non first party exclusive went multi-platform). 

 

This in a nutshell is why Sony is down on sales.   A 200$ PS3 would be flying off the shelves.  (Maybe not Wii-esque, but damn close).  A PS3 that is within 150$ of the 360 outsells it on a weekly/monthly/yearly basis.  That 200$ price difference is just too steep for them to overcome.

The problem for Sony lies ahead.  They have a console that is too similar to the Xbox 360.  Every sale that they lose to the Xbox 360 represents a dwindling potential buyer pool primarily because of price which results in even more difficulty to maintain the marketshare they desire.   They need a price cut as soon as humanly possible in the worst possible way.  People need to have access to their system.  (They have some very good games that make the console worthwhile) but with the 400$ albatross over their head it just isn't enough when you can get a 360 for 200$ for the average consumer.

 

Essentially, it's just a price thing.  Not much else.