I could be wrong but it seems like Sony based their sales projections on the assumption that the PS3 would maintain sales throughout the year and then see a massive boost from a price cut and/or the release of a new model of PS3; and they didn't factor in a reduction in the sales rate in the absence of a price cut and/or new model.
At the same time, it wouldn't surprise me to hear that a more rapid than expected decline in their revenues from lower hardware and software sales for the PS2 and PSP have damaged their financial position to the extent that they can't reduce the price of the PS3 as they planned on; and/or that the PS3 slim was delayed due to technical challenges, or because they have had difficulty in working through excess inventory of PS3 hardware (They probably don't want to have 1 to 2 Million old-style PS3 units sitting around after they release a new model, and losing $100+ in additional incentives to sell these units is probably not the strategy they want to take either).
