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The PS3 actually sold very well.  I think the negative stigma is based solely on the fact that the competition is still slightly (or in the Wii's case much, much--) more than it has.  This gen is a strange beast.  Even the so called "loser" is experiencing great success.  I think I even saw an article stating that the PS3 sold MORE in the same amount of time than the PS2--this was a couple of years ago, though.  A price cut of even $50 would cause PS3 sales to explode.  It just comes down to when Sony feels the pros of a price cut (larger install base) will outweigh the cons (losing more money on each console sold).