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godf said:
sony's marketing for PS and PS2 moved it into blue water.

And there's still a lot of brand loyalty left over from that too. Still a lot of casual gamers who'd much rather get a PS3 then 360 when the prices came down.

Except (of course) that "casual gamers" don't spend $300 (and rarely spend $200) on a console so it is possible the PS3 will never be inexpensive enough for the customer base they built.