We are constantly told that the PS3 sales will pick up 'in the future as it's price drops', now, forgive me if I'm wrong but isn't the USP of the PS3 that it is so much more powerful than anything else that is available?
In 'the future', when the PS3 is affordable will this USP not have been blown away? The answer is yes. This happens during the lifetime of all consoles as their technology is eclipsed by the PC. In the case of the PS3, if Blu ray ever becomes a major platform it will also be so much cheaper to buy a stand alone player anyway. What made the PS1 and PS2 successful was not the power of the hardware - competitiors had more powerful hardware but couldn't match the sales of the PlayStation consoles.
Everyone on this forum knows that having the most powerful hardware is no gaurantee of success (in fact it seems a curse). Sony's competitors have learned this and adjusted their tactics accordingly (well Nintendo have at least). It's simply mind boggling that Sony somehow presume that the laws of physics/videogames don't apply to them.
Gaming is a momentum based industry. Time after time it has been proven that it's very tough to recover from a slow start and that a fast moving juggernaught is impossible to stop. 360 did not gain enough momentum in it's early days to fend off the Wii.
PS3 has had such a slow start that it will be too long (if ever) that it catches up with the 360. If Sony want to stay in the VG industry then the next 4 and 1/2 years are all about damage limitation and reflection on where they went wrong. They are simply out of the chase now. They are in the same position that Nintendo where in 1/2 way in to the life of the GC, i.e. no way back this generation.