I'm really amazed that there are still so much PS3 fans in denial over what's happening.

I mean I see healthy sales for PS3, but no where near the succes that PS2 had, despite Crazzy's attempts to prove otherwise.
A lot don't seem to understand the appeal of Wii. Wii DOES sell to A LOT of PS2 owners. Fact is, not only "new casuals" like wii sports, everyone I know likes it, including people that loved GTA, Halo etc last gen.

Fact is, people that buy one or two games a year have no brand loyalty whatsoever, they care about price and hype. They buy what hits the mainstream news, cause they don't read gamemags and sites. It is clear that that battle's already won by Wii.

Blu Ray will play virtually no role in the succes towards casuals. People that go BR now are mostly filmfreaks or technolophiles that will want to buy buy a standalone model, because those are conceived to be better. I'm not saying they are, but if I want to buy a new CD player, I'll buy a very good standalone one, not one that also playes mp3's.
Within a year BR players will have dropped in price below PS3. Plus BR won't capture a significant part of the market for the next 5 years. DVD's are very cheap and the quality difference is just not big enough (even on a HD screen).

 I'm honestly asking. I don't consider the PSP to be a failure at 30 million units-- but its software attach rate lower than the DSes. 

 The PS3 has taken the #1 spot in America for what, two weeks now? Yet game sales for those two weeks haven't inceased accordingly. Just last week, there was DMC at a respectable #4 spot, and then the next one is COD4 is #16 out of the top 20 top games sold. A spike in PS3 sales should mean a spike on game sales, right? Iono, I just expected more PS3 games in the 20 ::shrugs shoulders::

 You've got that backwards a bit, I think.  Tho, you seem to be realizing that in your earlier posts.  Because there was no jump in PS3 game sales, that can't be the reason for the jump in PS3 consoles sales.  It would almost have to be then that a noticible amount of buyers were waiting out the conclusion of the Blu-ray / HD DVD format decision.  And Blu-ray coming out on top was enough for them to decide to go with a PS3.  But not for any particular game.

And 2 week of higher sales in America isn't nearly enough to offset the greater than 2:1 unit  advantage that both the X360 and the Wii enjoy over the PS3.

It probably should actually, or at least enough to impact software sales by a lot.

I mean the 40 gig PS3 doesn't even come with a game. Unless these people are buying it soley for a movie player or 90% so you'd expect either a newer game or two in the top 20, or an older game suddenly making a reemergence.

Not to mention most of the time people buy more then one game with the system. Most people don't buy a game a week let alone a game a month.

Really we'll have to see NPD wise if software sales are only mildly up revenue wise, or as high up as they should be and that the software sales are just spread out among many games.

Yes, but in my country internet connections have become pretty casual, everyone I personally know has one. And the PS3 doesn't need to be hooked up to the internet to play games and watch Blu-Ray movies. Only for online play, PSN store, chat/websurfing/newsfeed and Home you need an internet connection.

in the US almost everyone has high-speed internet unless they live in very rural areas

but casual gamers still don't hook their systems up to the internet

 my bro-in-law only had ps2 last gen, now only has wii this gen and he still hasn't hooked up his wii to the net...he's a software engineer with about 10 computers in his house, but hasn't bothered to hook up his wii's wireless yet

 casual gamers just don't care that much about those non-gaming functions on the consoles...they use it to play a game or two occasionally and that is it...something like HOME would never get him to hook up his wii if it was on that console