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Cipherr said:

Understatement of the year IMO I think if the PS3 launched at $399 it would have obliterated the competition. I know people will call me (and Sony) crazy but I still believe Sony had the ability to sell their console on brand name alone. I just think they screwed themselves out of it by being $200 dollars too damn high. The cost was just out of reach man. All they needed to do was release something similar to Xbox is price and power and it was game over. Its not like the PS3 would have needed to gather 3rd party support, it had all of the support before it even launched! All they had to do was release something with a decent price for the consumers and they would have just continued where they left off.

I dont think its to late for them now, but I do feel in the eyes of the average consumer, every day that passes is another day a person has to let the purchase of a PS3 float farther and farther away from his/her mind. You have to remember the average gamer has no idea about BR diodes decreasing in price or anything like that.  The longer Sony waits to drop $200 and hit that magic price point the harder that uphill climb will be. 

As much as we'd like to blame their defeat on every other reason why people like myself have never cared for Sony's products, the fact of the matter is that its the price tag that is hurting sony. However, to lower that price they need to either take out Blu-Ray (which is unfeasable), remove reverse compatibility (which wouldn't lower it enough), or take an even bigger loss on each unit sold (which would only make the PS3 more of a trainwreck and threaten to seize the project all together should the stockholders take action). The fact Sony is already smugly boasting about the PS4 probably means they've not much hope for the PS3's long term success. Hell, they've already signed the Ps2 up for another seven years of service to pick up the slack where as Microsoft and Nintendo are retiring the GC and Xbox with Madden 08 this year. The only thing keeping the PS3 from failing even harder than the GC did intitially was the phenomenal momentum brought over from the power of the franchise established by the PS and PS2.