Not that I think the PS3 will ultimately flop like say the Dreamcast. But...
At what point does the market as a whole move on, and a console dies from sales inertia? At what point does 'wait, the games are coming!' no longer matter?
I don't think this is a relevant question now, since there are big games coming soon that are already in development. But what about the developers and publishers now who are making their plans for big-budget titles for 2008 and later? Will they jump ship at one point? If you had $10 million and your company at stake, what platform would you put your chips on right now for a big 2008 release? Sooner or later there is a snowball effect.
I think Sony will institute a price cut when the next big title comes out, which should spur sales nicely. I guess there's not that much point to do it beforehand, if sales don't go up it will make them look worse.
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