It's simple: most people think of consoles as a standalone business, but Sony understands that consoles are just another platform. PS3 = early adopters and audiophiles, PS2 = mass market, PSP = handheld games. It's an integrated strategy for a diverse market where no company holds a monopoly position anywhere, anymore.
Noone at Sony expected the PS3 to sell more than 6 to 8 million ("sold" for Sony means units shipped, not sold to final consumers, which means they should hit their target by mid-November) its first year. Nor do you want to sell more than that -- each first-year console has high manufacturing costs, which means the price point is high, and you still lose money. The first year you spend cost-reducing the heck out of the hardware and getting developers on board. Costs come down, and then the mass market opens up.
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