Sony is in a very difficult position right now with their PS3, but they brought it upon themselves.
The price is one thing, but MSplayed it safe dor now, with their XB360, so people are waiting to see what happens. There's a LOT of FUD (Fear, Uncertainty and Doubt) coming from the MS camp, and it's not fortuitous (I'm not ready to believe it is) as this is a common MS tactic.
I'm waiting to see if 3rd parties bite into this FUD or not. And basically, that means is FFXIII going to be PS3 exclusive or not ? I believe that if FFXIII is confirmed to be a PS3 exclusive, sales of PS3 will explode (well, with a price cut).
The FUD from MS is powerful (as always with MS FUD) but if you think for it for 10 seconds, it doesn't hold. The XB360 is for hardcore shooters fans. All the best game sales on this console are shooters. Online is perfect for this type of games, highly detailed graphics too, "physics" too. These are also very good for racers. But that's about it. Problem is, shooters of this type are not the best thing japanese people prefer, far from it. Hardware wise, the XB360 is even further from japanese tastes (unreliable, too big, ugly, ...). So the sole thing saving Sony right now, is the japanese market. Because westerners won't think twice if FFXIII goes to the XB360.
It's not so clear for the japanese. I was saying Mystwalker were fooling themselves by trying to "save" the XB360 in Japan. All they're going to do, is dilute their new franchises. And I doubt releasing an Anime (that doesn't look like to be a killer at all, but rehashed material) will change that. I'm not surprised that japanese people sell their XB360 once they finished Blue Dragon. It's no good sign either, because they sell it before Lost Odyssey is even out. Must be the reliability problem, but it also shows Blue Dragon has nothing compelling.
So I see the biggest hurdle that PS3 will have to overcome, is that game of attrition that MS is playing. The good start in Europe is a very good thing for PS3, reassuring 3rd parties a bit.
Now, they have to convince Japan, and everything is on the shoulders of Square IMHO. Which would not be a problem while Sakaguchi was there, but now that the big fanboy is out (yes, I mean Sakaguchi H., or is he just holding gudges for life ?), it's not so clear.
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