they start slow until they get it right.. thats for sure, it been like that for all ps3 stuff, PSN, ps3, home, even their own vaio, sony ericcson, and walkman devices

No they don't, their sales estimate was way off, they are clearly intended to sell more PS3s.

Close =)

No, they thought they would trounce that lame Wii thing and easily outsell the Xbox 360 within a couple of years and that they would sell far more consoles at a higher price than they actually did.

I think SONY has a realistic view of the PS3 -- its a power machine useful for experimenting with tech which will be used in the future (3D, Motion controls, blu-ray, etc). 

 Really SONY's mistakes with the PS3 include -- taking too long to give developers dev kits, the $600 launch price, poor console marketing poor game marketing, taking excessive losses on the console. This ofcourse means that SONY will be in a strong position to fix these problems when they launch the PS4, by launching at a lower price (think $399), letting developers get their hands on dev kits earlier (better launch games) and by marketing the console and games better they will find themselves doing better next-gen. 

Sony were idiots who thought that everybody was a Sony fanboy, didn't realize that software sells hardware, that even the best software can't sell 600$ of HW, made the PS3 like it is solely to push the Blu-Ray and Cell (these two were the reason the PS3 was so expensive in the first place, they just weren't ready for real mass production), had a sucky promotional campaign...

Should I go on?

With PR like "pepole will find a second job to find it", Sony really missed the mark, most pepole don't like gaming to this extreme extent.

The PS3 is a mistake and a failure, and the machine would've been much better, made a smaller loss (or even a profit!) sold a lot more (due to being cheapr and that most of the developers wouldn't have seen the need to develop for the 360)... really now.

(And make no mistake, PS3 is my 7th gen console of choice).

The ps3 is doing fine...........

-It just got PSN plus adding another revenue source
-It is getting steamworks, which will give it access to the more technical minded gamers, a group that has been pretty loyal to the 360 because this group really likes online play.  Now, they'll have another reason to shift to the PS3.  This is a big thing.
-They're getting the 360's version of netflix, so that you won't have to mess with the disc
-The PS3 is getting the ability to use GoogleTV 2011
-The PS3 is concentrating on a bigger gaming market-the games that fall along the "hardcore" category, and so don't need to split their focus to the Move sideshow, as MS is doing with their respective kinect system.

So the PS3 is becoming a lot more valuable for purchase no matter your perspective

Now I expect a more permanent price cut from the PS3/360 this year....MS definitely has the $$$ to pay for it, and the PS3 has some extra $$$ coming in from the PSNplus, as well as the profit that it is currently getting from the hardware but I expect Sony to pull the same low or slightly negative profit strategy that it has run since the PS3 started and make a cut.  At least though, that it can make a fair cut, say $50 and not become financially in too bad shape.

The PS3 is the pampered child that Sony bought a brand new car for on its sweet 16, sent to all of the best colleges, and dressed in nothing but the finest clothes.  They told the PS3 how wonderful it was better than its siblings, when it was a child, and even paid for its abortion when it accidentally got pregnant.  They also entered the PS3 in beauty pageants and told the PS3 that it would be a model when it grew up.  Instead of taking care of its parents when they got older, the PS3 married a tattoo artist and works as a waitress at the local Waffle House.

They had such high hopes........

They thought ppl will go and shell out $600 because it's called PLAYSTATION in short they got cocky because of their 2 winning streak in the past generations. Now don't get me wrong PS3 is my console of choice and IMO PS3 games >>>>>>>>> what ever garbage they got on Wii 360.

The only words that come to mind are this words 

"the ps3 is not a game console nor does it try to be one"

Sony said that and I thought to myself don't call it a ps3 then call it something else