Do you think that the Ps3 will outsell the Ps1?

[CommonMan]

Yes it's outselling the PS1 LTD, but that is really just a factor of more systems being sold IN GENERAL this generation (thanks PS2 ). In order for it to pass the PS1, they would have to hold out from releasing their new system for another 4 years, which they could do but it could be dangerous, particularly if Nintendo brings out a system with the same specs but with some new hook that gets the mommies and daddies of the world all a-flutter before that time.

It's possible, of course, but I put no due to the fact that as they are not the market leader, they have no choice but to react to the market. Basically, in the video game market right now, Nintendo is what's known as a "price-setter", this means they set their price by what is called "Cost-Plus" pricing. They take their full cost and add their desired profit on top of it, and that becomes their selling price. Because their product is unique and therefore less direct competition.

Sony on the other hand not being the market leader is a "Price-Taker" meaning they have to use "Target Pricing", which is where they take the Market price, minus their desired profit, to reach their full cost. They must somehow get that target cost below the market price to not be selling at a lossm which is looks like they have done recently, but I doubt they are hitting any "Target Profits"

Thus if the market leader (Price-Setter, Nintendo) drops their price to a point where the "Price-Taker" (Sony) isn't profitably going to go, Sony either has to operate in a loss leading environment again (which is eventually going to piss off the stockholders who are going to want a return on assets at some point) or stay still on their price and hurt their brand power for the future.

It doesn't make sense from a business perspective to continue to emphasize the PS3 when other products in the mix are much more profitable (PSP and PS2). So, there's my reasoning on my "No" answer.