Double the entry price of the PS2. That about says everything.
In choosing to minimize per unit losses, rather than starting with a design that could be manufactured cheaper, Sony completely alienated its installed user base.
The lack of must buy titles upon debut is absolutely nothing new for virtually any console. At best, if a console is fortunate, it will have that one killer app people will be willing to buy the console for, under the basic assumption that the price remains consumer friendly.
Beyond that, the initial run of new console games are traditionally uninspiring by year two standards. Developers are largely able to get away with this by the simple virtue of "showing up to the season opener" which means there will be a debut audience present and willing to buy what's initially available. Rarely do most of these games merit purchase under their own virtues.
So, nothing new there for the PS3, but unfortunately a typical mediocre initial lineup becomes all the more blaring and offensive when used as a reason to sell a $500-600 console.
Make it cheaper (PS1 $299 PS2 $299 PS3 $499-599) or don't debut until it can be released with an solid initial line up of killer apps, something no console has ever done. Hold off on the debut, and both publishers and investors get cagey as they need to see a return on the initial R&D investment sooner than later.
Sony essentially painted themselves into a corner with the PS3, largely in the interest of pushing the B-RD format.
Whether that victory was worth the losses or whether this will be a Pyrrhic victory for Sony remains to be seen.
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