Why sony failed to deliver with the PS3

[bbsin]

dtewi: " High Price ---> Less Sales ---> Less Brand Recognition ---> Less Sales "

That's horrible logic. Neither Microsoft or Nintendo has anywhere near the amount of brand recognition as Sony. For example, Sony Bravia HDTV is neither the best HDTV nor is it the cheapest. Yet the TV sells are still great but only b/c of what? brand name.
Your chart would have been better off like this:
High Price ---> Less Sales ---> Worried Publishers ---> Less games ---> 3rd Place.

Anyways, the reason why the PS3 isn't selling as well as expected is not because the PS/Sony brand has gone cold (lawls @ anyone that really believes that), it's because it's still the most expensive console with the least value in the minds of gamers. Here's a obvious list contributing to the PS3's "slow" start.
-Bad marketing (this is living = wtf?)
-By far the most expensive at launch (2 times the amount of PS2 launch)
-Horrible PR (put a sock in it Ken, for your own good)
-Fierce competition (Wii60)
-Bad ports/ strange architecture (You guys know the games)
-Lack of features many users are already accustomed with. (in-game XMB and rumble?)
-Lack of good exclusive software. (compared to the other companies)
-Format War (It's not the same when DVD was the only format and consumers had one choice)
Most of the negatives are gradually getting better, and people seem to forget the PS3 has only been around for one year. But that in a nutshell is why the PS3 is not doing as good as people expected.