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Successes

 -Graphics.  Sony's graphics are improving and we are getting some better games very soon.  Nuff said.

-Blu-ray.  The cell is going to be doing double duty for blu-ray movie duties and game CD's.  That is great, b/c it saves technophiles money instead of making them buy another peice of hardware.  Ultimately the price of the blu-ray portion of the PS3 is going to go waay down to manufacture.  So this will be a big strength for sony, within 3-5 months.

-Software.  I would call this a strength, but a limited and less strong of a strength.  Sony's exclusive games for the remainder of 2007 look a lot better than the 360's exclusives but not as nice or as plentiful as the wii. 

-Improved demographics -  More high-def TV owners will mean more PS3 sales.  Also, the average age of gamers is older these days, which should help sony ( and microsoft too for that matter)

Blunders-

-The upcoming eye toy is going to be a failure.  In order for it to work, sony would have to encourage interactive games, the kinds of games that nintendo is known for.  This will be a big shift in sony's philosophy and I don't think that they can play nintendo's game at this point.

 -The PSN.  This thing, so far hasn't done a whole lot with itself.  The PSN has a lot of potential to rival Live, but sony seems to want to be mediocre in this department.  I hope that HOME and Warhawk will make the whole online thing a strength of sony's rather than the weakness that it currently is.  Now online gaming, adds a lot of value to games.  I have been having fun playing starcraft for a few years now, and haven't played a regular one player match on starcraft for a few years now.  So this online matches have really kept the game going a lot longer, so i'm pretty happy with the $30 that I spent on it.   

 For the online gaming, I expect this to be a strength of sony's or at least competitive with Live by mid 2008 if you include HOME in the comparison....