The fact that YoY is down means that the demand for the product at the price point it is, is falling.
To PS fanboys, that means that not as many people see it as worth the price and in the world of economics, that means its time for a price drop. Simple.
It's not the competitors fault that Sony aren't in the position to make that drop so guess what? The reasons, be it economy or cost to make the system don't matter. What matters is that the PS3 is losing demand for its current price, losing more market share to its competitors and losing Sony and potentially third parties money.
If this trend continues you'll start to see less PS3 exclusives, they'll go multiplatform or if the PS3 really isn't very viable financially to third parties going deep into the year then you'll see more of a shift toward Wii development.
It's all about momentum and this generation is a very nice example of that, its like a snowball, PS3 was priced too highly, doesn't sell as well as it should, third parties make their exclusives multiplat, PS3 sells less, Sony can't lower the price, PS3 sells even less, this all culminates in a greater Wii marketshare than the HD consoles combined and if the 360 isn't getting certain games then the PS3 has no chance.
The snowball needs to be stopped now before it's too late.
