To say that the Playstation 3 is doomed is essentially saying that Sony has lost control of the Playstation's fate and its new destiny is not particularly good ...
I don't think the PS3 has hit that point yet but if Sony doesn't start acting immediately the PS3 will become "Doomed" far sooner than Sony thinks. The biggest problem with Sony pricing the PS3 at $600 is that Sony didn't provide $600 of value to gamers; certainly it is a Blu-Ray player and George Forman Grill all in one but the PS3 really needed a diverse library at launch and a steady stream (2 or more per month) of high quality exclusive games.
The current rate of game releases means that the PS3 has a very low value to gamers, and the current sales of the PS3 is shaking the confidence of developers; being that these problems work against eachother Sony really has to act quickly. As I see it Sony has two choices, they can boost the value of the PS3 by spending money to secure high-quality exclusive titles (50 brown paper envelopes with $5 Million or more in each should do the trick), or they can reduce the price of the system ($200 price reduction seems appropriate).
