I m honestly surprised by the lack of interest on the behalf of Sony to recapture the market... They r not realising the importance of time.. Although 1 yr is pretty less time to see the effect of any console but there three things which i think are going against Sony.
1. They have lost the Exclusives and the new IPs they developed failed like Lair, Heavenly Sword and Warhawk.
2. They have too high cost and i don't see them lowering it either..
3. They have removed the Backward compatibility and this i think has hurt them cuz there are quite a good games still coming for PS2 and had they kept this compatbility some PS2 buyers might have jumped on the PS3. atleast i would have.
Overall i think Sony have not managed to counter the MS threat.. although i do believe that MS has not managed fully take the advantage of the damage they have done to the Sony but it has hurt Sony a lot.
Anyway the most important part is software and i believe Sony has lost it badly .. and so the chance for them to return is pretty slim.. it will be better if they wrap it and sell it to some other company which has passion to succeed...
What you say.?