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Realistically the answer to the question is no. No Sony is not going to turn around they still are not making a significantly stronger option, and the media player argument is only getting murkier. Further more for development purposes their competitors make far greater pitches.

The Wii is the cheapest console on the market. That will lead to a higher adoption rate over the short term. The 360 has the highest software attach rate based on NPD numbers. So both those consoles are number one in different ways. They are also relatively close in hardware sales as of late. You can argue both are quite healthy. A new price on the PS3 is not going to change that.

Sony on the other hand has the most expensive machine, and falls halfway between the other two in the attach rate. Further more the system is third in library quality. That is very much a given since even the Sony boosters fixate on next year rather then this year. So they really have nothing to offer consumers other then the name and a sale.

Ironically given the sales of games I see developers falling into two camps. They are going to develop their low end titles towards the Wii. Which basically prevents porting to the PS3. They are going to develop their high end games for the 360 to make use of the hardcore gaming market with that great attach rate. Finally the PS3 will get ports from the 360, but little in the way of exclusive support.

You can paint a rosy picture of the PS3 right now if you like, but the console is on the knifes edge. BluRay must see serious adoption this holiday season. Further more it must not lose to HD-DVD. The PS3 must see a significant increase in sales compared to their rivals. Otherwise they will permanently lose some developer support.

Honestly there is no justifiable reason to believe that Sony is going to see a turn around. Further more if they somehow manage to steal sales from the other consoles if it is in the least bit threatening. Well those manufacturers can easily afford to increase the value of their offerings, and with their better qualities we would return to the status quo that much faster.