I believe the "discipline" part of that quote was fake. But regardless, this is a nightmare for PS3. Its a nightmare for third party devs who bet the farm on PS3, too. And 174K is pretty pathetic for 360 as well. People were saying in January that under 200K/month would be very bad for PS3. Now even 360 isn't doing that, and PS3 could fall to 70K. Or lower. So far, PS3 has had an amazing ability to perform below our lowest expectations at every turn. So maybe it'll fall to 60K or 45k a month. Who knows. 100K was the seeming over/under for April, and it didn't really get close.
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.