People think it sucks because of the perception they got at launch from news sources who compared its sales to the Wii. People didn't know the Wii sales were that spectacular at first, and they assumed perhaps the 360 just hadn't got its legs at first, when it launched.

This popularity contest that popped up, left the PS3 out in third place, or last place, in most peoples eyes, and it's HARD to change a first impression. Sony is doing it though, as the 360 also has kinda ruined its rep with RRoD issues. 

If they think it is not as good as the 360, then thats just preference.
But if they actually think it sucks, then they must just be uninformed.

A very good realization for these people is the latest IGN 3 red lights podcast.

Hillary Goldstene (360 editor) lays out a great debate for why he believes the PS3 is in a better situation when compared to the 360.

If you like podcasts, I think this one is top notch. (as the jeff bell rings)

I couldn't tell you why so many people have such a negative outlook toward it. It's a great and totally capable system, and everyone knows at least that much. There's tons of games for it now, online is amazing and free, the failure rate is less than 1%, it's got future proof tech in it. I guess people just hate it because they are fans of Nintendo or Microsoft exclusively.

it sucks? why, its a great piece of technology. just not in my price range yet.

The PS3 doesn't suck. But it did suffer from three clear issues at launch which shaped an initial perception I think:

a) most damaging Sony seemed to have asked MS for advice on how to promote the console, 'cause they couldn't have made a worse job of it even if they asked MS to handle marketing for them! Stupid comments about 'get a second job' etc. etc. Just really really poor PR that made me put of buying one for a long time and definately went down poorly in US and Europe.

b) second most damaging, lack of gaming content during first year, compounded by releasing after 360 and having to compete with a similar spec'd console with mostly the same games plus a lot more. Again, this was particularly damaging in the US. Linked to this was a sense of 'too many irons' in the fire - they were talking about games, about TV, about PSP linkage, about PSN, etc. but everything seemed to be progressing at a snails pace (still is in some ways, and I say that as a PS3 owner)

c) third, while the inclusion of BR suited what I wanted from the console it was clearly a risky choice, and one that while it will now probably pay off in long term hurt the console terribly at launch (again, particularly in US). Now gamers had to accept purchasing a next gen movie player and next gen console at the same time - and many clearly didn't want to.

So now the price is down, the library is looking not bad with a lot of big hitters to arrive this year and ongoing, and BR looks poised to win the format things are definately looking better. Couple that with end of year 1 sales WW seeming to match 360 after more than two years in the market, and PS3 just squeezing a holiday win and Sony is probably breathing huge sighs of relief.

However I don't think they're 'out of the woods' quite yet, although they're close. The negative perception is taking time to leak away (again, particularly in the US), they still need to withstand whatever MS tries this year to boost sales (price drop, etc) and they still need to deliver on promises made but unreleased - PSN improvements, LBP, strong links to PSP and innovative games. These things feel a lot closer finally - but until they land, and until PS3 steadily outsells 360 WW they are not out of the woods, but they probably have a pretty good view of the promised land through the branches right now.

@reasonable:
"most damaging Sony seemed to have asked MS for advice on how to promote the console, 'cause they couldn't have made a worse job of it even if they asked MS to handle marketing for them! Stupid comments about 'get a second job' etc. etc."

While I agree with most of what you said, this strikes me as hilarious. MS has done an AMAZING job of advertising in the US and their console is rocking it up. Look at the GoW ad, the Lost Odyssey ad, the Halo 3 ads, they're all quite brilliant. If you want to mock MS, advertising in the US is not the way to start.

Whereas Sony has taken the "you'll buy this whether we sell it to you or not" strategy... Guess what? That doesn't work for Americans. We're used to being the cheapest market and delivering the best "stuff".

That's why the 360 wins and that's why the PS3 won't surpass the 360 in NA until 2011 at the earliest. Why? Because it doesn't offer enough to offset the cost.

No, I think you missed my little joke.  I was just saying Sony PR was so bad you'd think they asked MS to handle their (i.e. Sony's PR) for them, allowing MS to rub their hands together, cackle, and come up with all the rubbish Sony have spouted.  I meant imagine if Ford asked GM to handle the advertising of Ford cars...  See?  I think MS has marketed well, while Sony has marketed terribly.

The joke wasn't that good and I guess I didn't make it that clear. :(

who cares what they say. I'm not getting no Wii for a PS3. I'm getting ps3 first then wii. Not the other way around.

PS3 sucks because its primarily a Blu Ray Player. At the moment it has no games. Lol.  But wait until the end of 2008 and we will see if all those PS3 games to be released live up to the hype. My predictions for next gen console  at end of 2008. Are:  Wii 44 million     X360  26 million    PS3  22 million

Totally agree really.

Lack of games a real issue.  Price of games also problematic many titles typically more expensive than 360 (EU).

Sony's stategy has been to loose money on VERY expensive hardware and make up the difference with the software/periphials so I am expected to pay £50 for a game and thats too much!!

Too many cross platform titles on 360/PS3 with virtually no difference in graphics, gameplay or features.