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All things mentioned are good/valid answers; and that, unfortunately, shows just how many issues Sony have.

I'd say the 3 biggest obstacles are Microsoft/North America (related issues), Sony themselves (they continue to make unbelievably nonsensical decisions that defy reason), and their financial situation.

Another issue would be the lack of a distinctive, popular mascot and/or a (consistently released) system seller. The mascot issue I guess falls under the "identity" category...

Speaking of identity...Sony has only just NOW tried to identify a color/color scheme with the PS brand. They chose blue. That's it. So boring and bland. They don't even understand the importance of aesthetics. Look at Microsoft..green is their main color (which they decided in their FIRST generation), but they combine it with white and silver to create an aesthetic appeal. Then with Kinect, they added purple, which also adds appeal, but makes it clearly stand out as a different (but also still xbox-related) item. Sorry, had to get that off my chest. I want Sony to succeed, but there are just so many issues they have/mistakes they make that can be seen clearly by the average "joe shmoe", yet CAN'T be seen by their team of professionals. Drives me crazy.

Anyways, good thread. Also depressing.