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The simple answer to the question "Why are games selling so poorly on the PS3?" is because there aren't that many PS3 systems out in the wild. Unless you have an unusually high attach rate, there are limits to how well a game can sell and how well most games sell. With the PS3 heading towards lifetime sales in the 30 Million range you should expect sales of PS3 games to be similar to the sales of N64, Gamecube and XBox games.