we really don't know now do we

No, we do.  Nintendo's quite literally won on their own merits (since 3rd parties have delivered almost nothing but shovelware for them).  I think even a "best case" PS3 wouldn't have taken away from that, as Nintendo went in a different direction entirely and that's what led to it's own success.  Wii took the mass market, and was probably fated to always take the mass market so long as Sony/MS went with the standard generational cycle.

Same deal for DS really, though there at least Nintendo was the incumbent market leader too.

Seconded.

Great reply leo-j.

apparently the PSP had a price cut in gamestop..

Why is it that we have seen shit load of this type of "what if the ps3...." threads???

like people already said:

Either

A) It would be in second place, with a cheaper price, but with less to offer (no blu ray, no ps2 compatibility, no cell, weaker gpu..... etc etc

or

B) Third place, due to the early retirement of the current ps3 (as it is) due to sony bankruptcy

Instead of making the PS2 Slim, they should have included wireless controllers, a slightly more powerful processor(1GH or so), more ram, a good UI and a HD output that upscales games, and have that compete with the 360 at $199 or so.

All the while they keep developing the PS3 and release it in 2008 with more efficient technology and more value. What really made the 360 was software, and what really killed the PS3 was the fact next generation isn't good enough, so you don't make it next generation until you get there.

The DS took MANY of the PS2 consumers, way more than the 360 did. The PSP also gathered much of the PS2 audience, and now the iPhone is finishing the job. To a smaller degree, the Wii also had that advantage of having some PS2 gamers cross over because it added a new value to the equation, with the controller.

The generational transition was not good enough this time around. People didn't feel the value was justified, the graphics were already good enough on the PS2, there was no need to improve. So they went with a smaller portable version, that was new value.

People were looking for new values, they still are.

IF my grandmother had balls, she'd of been my grandfather... it really is pointless to discuss a situation that was impossible on so many levels

SCE would have discontinued the PS3,because of huge losses

according to SCE the PS3 has a 10 year cycle, whether or not its true its a confirm 100% this gen PS3 will finish 3rd, sorry to say, even finishing 2nd is bleak for them. it was too late for them to make the turn around.
i'll make a bet "IF the PS3 can finish 2nd with a gap of 10 million or more over the 360, i'll eat my shoe" for real.