The PS3 saw sales of 3.4 Million consoles sold worldwide in November and December of 2007, even though it saw price reductions, massive bundling (Dell.ca was selling a PS3 with a game and a HDMI cable for $400), and the victory of Blu-Ray. I just don't see this happening ...
Now, some people also claim that the PS3 wasn't designed to see PS2 sales out of the gate which (essentially) means that the PS3 will never see PS2 level sales. Realistically, the sales of the PS2 in its third, fourth and fifth year were so high because it was an inexpensive system (under $200) and it had a massive number of games that were being released; in contrast the PS3 will (likely) not be that inexpensive of a system until late in its fourth year, the low sales and high development costs will keep the number of game releases low.
Now people may claim that the PC will keep the number of releases for the HD console's high, but the HD consoles are already pretty close to the minimum requirments of most PC games being released today; and developers who started games in 2008 that are to be released in 2009 or 2010 would have had to make the choice between releasing an impressive game for the PC or releasing a game on the HD consoles. For those in doubt of this consider that an impressive game in 2009 will have to treat the top of the line Graphics cards and CPUs that are on the market today (which are far higher performance that the HD consoles) as their low or mid level hardware.
