And who says the 360 is doing well?

Well, it's doing better than the PS3 now, but not by much.  The 360 and the PS3 have both lost Japan.  They're going to sell so badly it will have very little effect overall.  Both are in a game drought right now, the 360 hasn't had a huge game since Gears of War and the PS3 only has Oblivion and Ninja Gaiden Sigma, a port and a remake.  Oblivion didn't sell well, we'll see how NGS does.  However, the 360 is likely to pick up soon.  PS3 fans say all it needs is a price drop and some big games.  However, the 360 is going to get these as well.  When the 360 inevitably drops its price to $300 it's going to be about the same price as the Wii, which is a perfect price to sell a system judging by the sales of the Wii.  $400 is still a bit too expensive and so is $500 in the case of the PS3. 

The 360 is also getting a ton of big games later this year, more so than the PS3.  You can see from this poll http://www.gamefaqs.com/poll/index.html?poll=2748 that the 3 most anticipated games on the PS3 this year are Grand Theft Auto IV, Devil May Cry 4, and Assassin's Creed.  All are being released on the 360 as well.  The 360 also has games like Halo 3, Mass Effect, Blue Dragon, Too Human, Bioshock, Eternal Sonata, Fable 2, and Unreal Tournament 3 which are all most likely going to be out this year and will make the system look very appealing.  Halo 3 is undoubtably the second most anticipated game this year, after Super Smash Bros. Brawl.  The 360 also has more support from American game designers, and since America and Europe are going to be the deciding factor for the 360 and PS3 this generation they may go over better with the audiences which are most important to both system's success.  It's also releasing more games overall and a lot of casual gamers only notice that.  I think we could definitely see a huge increase in 360 sales later this year and during the holidays. 

I will say that maybe a price drop won't happen soon for the 360 for one particular reason.  A lot of people agree that Microsoft entered the console business to prevent Sony from creating a complete home entertainment system thereby hurting the PC business.  Indeed they lost 4 billion dollars on the Xbox and even if the 360 does well they will probably never make that back.  However, this may not matter to them if the 360 continues to take away half of the PS3's audience.  They may just go with Nintendo's strategy and try to sell the system at a profit so that they don't lose any more money.  They did say they think the 360 will be profitable in 2008. A $100 dollar price drop costs them 100 million dollars for every 1 million systems sold.  As long as Sony doesn't achieve their vision of becoming a complete home entertainment system and therefore cause Microsoft to lose money elsewhere they may not care about having massive sales. 

All in all, though, if the 360 drops it's price this year and the games are well recieved it will probably do better than the PS3 for the rest of this year and the holiday season.

For me this question is to relative and dependant on whos standards you go with, but having an opinion I´d have to say for me Sonys standards count the most, they made the product, they did the research, they did the marketing, they sayed 6 mil in three months, this didn´t work out at all, so yes it didn´t meet expectations by a long shot and thats bad.

Sorry Sonytes, I still think the PS3 is a good product with a futur, but for now Sony needs to accept that the situation isn´t good (which I bet they do) and do everything they can to get a brand new hype, not just games and price, they need a tripple (irony) whammy, meaning two or three big exclusives in a month combined with a price cut (min. 100$) and a big, big ,big marketing campain, I still can´t grasp how the original campain screwed up, if you have an expensive product with little games to start with you NEED to show gamers what they are buying, they have to make big promises and ceep them, not say it´s a Playstation so you will buy it no matter what, throw "this is living" out and go for "this is gaming", (the TV adds really hurt Sonys image IMO) show us what will come, show us nobody can do what the PS3 can do on its own turf, and cut the whole multimedia livingroom machine crap, it´s a "Play"station, you play for fun so bring on the fun

I agree, Sony itself it expects 11 million PS3s sold for the fiscal year. Selling 200k a month is far short of that goal. Every month with huge shortfalls makes it that much harder to meet their own objectives.

Contrast that to Nintendo which seems to handily beat their own estimates as well as outside analysts estimates at every opportunity.

to El Duderino,

Yes, you re right, Sony marketing for PS3 was totally crap !
Wii marketing is currently awesome associating all family aroud the console.
Without conting the DS ...

to deadhrose,

1/ "However, the 360 is likely to pick up soon"
==> what a big arguments ...

U give us wrong information since the 3 most anticipated game for PS3 are FFXIII/MGS4/GTA4 (if I follow your link) and not GTA4/DMC4/AC ...
I m pretty sure that GTA4/DMC4/AC are on the most wanted game for Xbox360 too and your link show nothing since the game list seems restricted.
Where is Heavenly Sword ? RatchetandClank ?
I can list a big list of exclusive game for PS3 too ... (this list exist somewhere on the forum)
UT3 come on PS3 too in fact.
I m not sure, but PS3 will may be have more game released for Xmas2007 than Xbox360.
And for sure, more exclusive game (that are not shared with PC for example like Bioshock, ME)

For the moment, Halo is nothing except for Xbox fan.
Their multiplayer beta was not saied to be incredible.
Neverthless, the soloplayer may be very good (wait E3)
Yes, this game will sell, a lot in fact, and I think will be good but I m not sure this is the best weapon to attract NEW Xbox360 owners.

U give us wrong information since the 3 most anticipated game for PS3 are FFXIII/MGS4/GTA4 (if I follow your link) and not GTA4/DMC4/AC ...

I said this year, MGS4 and FFXIII aren't coming out until 2008.  Reading comprehension ftw.

Where is Heavenly Sword ? RatchetandClank ?

Lair got 3% of the votes on that poll and those two games have less anticipation than Lair at the moment.

I'm pretty sure that GTA4/DMC4/AC are on the most wanted game for Xbox360 too and your link show nothing since the game list seems restricted.

GTA4 is after Halo 3, obviously.  It's number 1 for the PS3 this year.  Devil May Cry 4 is number 3, it wouldn't even be in the top 5 for the 360 clearly.  Assasin's Creed is hard to tell.  But it doesn't really matter, the other games on the 360 have just as much or more anticipation.  The alternate PS3 games have a lot less.

I can list a big list of exclusive game for PS3 too ... (this list exist somewhere on the forum)
UT3 come on PS3 too in fact.

And I could list more exclusives since there are more games coming out for the 360.  I don't care that UT3 is on the PS3, I was listing its most anticipated games, not exclusives.  It's not going to be big on the PS3 anyway, wrong audience.  It will sell 360s, though, UT is a huge deal.

For the moment, Halo is nothing except for Xbox fan.
Their multiplayer beta was not saied to be incredible.
Neverthless, the soloplayer may be very good (wait E3)
Yes, this game will sell, a lot in fact, and I think will be good but I m not sure this is the best weapon to attract NEW Xbox360 owners.

And I don't think GTAIV, DMC4, and AC are going to attract new PS3 owners.  As for Halo 3, well we'll just have to wait until September

^^ you registred here just to get a shot at me ??? I´m honored, yes standard was maybe the wrong word, I was saying that you and me have different opinions on what good or bad sales are (or what our standards are) and that its most important to take a look at what sonys standards on good or bad sales are. Sony whent public with big numbers and much confidence, but since the PS3 sales are way below what Sony estimated the sales are bad, even for sonys standards, (not media format standards)

sorry about the confusion and welcome here

Memory stick didnt die, it sells better than SD cards.

Well, the ps3 is getting alot more exclusives this year than the 360 for sure and everyone in this forum knows so, uncharted:drake's fortune, Heavenly sword, Lair,NBA 08, Killzone 2, Metal gear solid 4, Warhawk,Folklore, nija gaiden sigma, singstarps3,etc.. I can list more but they dont pop up in my mind. The ps3 would sell better than 360 even if the 360 is priced at 300, an the ps3 priced at $399.99 or $449.99, the reason for this is because microsoft already released a 300 dollar 360 which is quite frankly selling worst that the 20gb 360. But the ps3 riced at or below the 360 elite would sell more consoles than the 360. The ps3 is new, the 360 is old, casual gamers like new things.

 I think you missed my point PS3 is selling worse than GameCube, which was a failure in terms of market share and mind share. I mean GameCube sold a little bit more than 20 million WW, even if PS3 ends up with 30 millions (it is time to start selling now) sony still have gone from the number one choice to a distinct second or 3rd. Or do you think that the total install base will be lower this generation?

PS3 is selling bad because it is selling worse than the last generation "loser". Even more important that loser more or less made money from day one meanwhile PS3 is bleading money. So yes the sales for PS3 is terrible, not because it is selling worse than PS2 (I mean Wii is also doing that in Japan) but because it is selling worse than GameCube.