What are the implications of the console race in Japan?

[shams]

Excellent thread, and excellent posts everyone.

I don't see any reason why Europe/US will follow Japan... for now.

I also think its telling that the PS2 is *still* doing pretty well - getting a lot of good games, solid sales and more.

The PS3 is still early (as is the 360) - the situation in Japan can change in the long term. But the PS3 has still yet to show/prove new gaming experiences. Without this, it is surely doomed... to a similar "death" that the PS3 is encountering.

As price drops, sales will increase - but only as its a pretty cool "piece of hardware" - media player, TV recorder, BluRay, web browser... and so on.