The biggest complaint I've heard about the PS3 from Japanese news etc is that the console is big and fugly. They are very space limited and expect their gadgets to fit their lives. The 360 and original Xbox also have the same problem and it's been stated many times that you can't sell a giant box in Japan. So Japan may be lost until Sony redesigns the system to be smaller and more easily integrated into the japan lifestyle. I don't think price is much of a concern in Japan. An Ipod sells for more $ then a PS3 and those things fly off the shelf in Japan.

Also, the Media in Japan is currently mocking the system like crazy, it's the uncool thing to have. If you think that it's got bad press here... your kidding yourself.

There's also the lack of games, even here in Japan, there is no such a big games to be looked for in the PS3, no valuable RPG, which are the main attractor in Japan, it seems the PS3 is trying to get the market by selling the same kind of title the 360, FPS and racing games, this won't sell in Japan what they need is a big game that sells enough units to encourage the third party to release their better games.

Dudes,
Since when did SEGA become the barer of truth? I think it's hilarious that SEGA spokesmen have been sounding off the horn lately about the major concerns with the consoles.

I absolutely agree that the price is a big factor for the PS3's troubles, Davey, I'm just saying it's already been addressed in Japan.

The price was lower in Japan than in EU/US to begin with, and it's already seen sales and markdowns to 400 dollars. So it has, compared to the US, effectively already seen two price cuts. This is hundreds of millions of dollars in losses we're talking about here, if not billions (if the system took off as we may want it to). You can't just keep slashing the price, hoping that sales will pick up.

As I've often said, Sony could drop the price to 150 bucks tomorrow in Japan. I absolutely agree that this would help sales; it would also bankrupt Sony in a matter of weeks, and that's the problem. As end users, we're not particularly concerned with such financial decisions as long as our system sells well, but for the companies involved and their shareholders, it's a huge deal. Sony has laid out their financial goals for the year, and any significant price drops in any of the three markets would dramatically effect those projections in an adverse manner. This is a much, much, much bigger deal than most of us realize or even care about, because we aren't Sony stockholders. We just want the system to sell better.

Using this same logic, Nintendo could drop the price of the Wii to 1 dollar tomorrow. Sound absurd? They'd be losing about the same money per Wii as Sony is losing per the PS3 right now, let alone after a price cut.

Here's the simplest way to put it, Davey: every price cut is a potential loss of hundreds of millions of dollars in profits. They've already marked the system down in Japan, to little effect. Are you really willing to lose hundreds of millions more in the hopes that this time, this price cut will be different, and it will turn the PS3 around in Japan? Again, as a system owner, I'm sure that sounds fine. As the actual executive in charge of handling the welfare of the company and its owners, not so much.

Oh right, it has seen a major holiday already. So let's review. In Japan, the PS3 has already seen:

1) Several major, high budget, Japan-oriented releases

2) A major holiday sale season

3) A price drop

4) Much weaker competition from the 360

And the system still hasn't budged. What we're now saying is that maybe another Holiday will be better, and another price cut will be different, and perhaps the next major titles will sell better than Mosou or FolkSoul have. We could use these excuses ad infinitum, actually. Three years from now, people could still be insisting that God of War 4 and Ratchet and Clank 7, combined with a price cut to 200 dollars and the Christmas season -- THAT will finally invigorate sales.

Realistically, however, all the bullets have been fired. Sony's out of ammunition in Japan, and not only have they not gained momentum, they've fallen farther and farther behind.

Sony could do themselves a favour and reduce the cost of the PS3 in Europe then...they need to make some in roads in Europe to have a chance this generation.

If the PS3 in Europe was the same price as the model in Japan i.e. approx $400...then it would be a winner at just over £200...get in there Sony...you know you want to. 

Well that they NEED to cut prices substantially is a no-brainer ,I hope they do it the sooner possible and with a good timing .

This I agree could be true. Europe is Sony's strongest market, and thus far they haven't seen a major holiday or a price cut. I think first place in Europe specifically is still a possibility for Sony, and I think a solid second place is a very strong possibility.

Does that counteract any of the point that Badhesatva made though davygee yes they would of had their system out longer but the losses would just be amplified by a larger market wouldn't they I mean I don't know how much Sony has cut off the price of the PS3 from its I believe orginal launch losses of $240 but cutting 200 off the price and lowering it to £200 while possibly causing sell outs of the system would cause massive losses to Sony. By comparison to my knowledge right now the Wii is £180 and just using common sense a system sold on its high in parts should never be able to directly price compete with a system sold on inovation and lower end parts.

Well Soy would never reduce the price to £200 anyway...seeing as the MRP is £425.  But a reduction to £299 in November would be a good move.  Yes they make a loss per system they sell...but would they rather make a loss with each system of £100 or effectively make the loss of £400 because they aren't selling it?