There are some solid facts that are being ignored in this question.

1. The majority of consumers have a set price point at which they will consider buying a console. There is a reason the PS2 is still selling so well. No matter what games are offered or functionality there is this fundamental nature of the market will not change. The majority of consumers feel that the standard acceptable price is around two hundred dollars. Even at that point it is considered more of a luxury item. So if you say that holds true for seventy percent of gamers. Then when you get around six hundred dollars your looking at something like ninety percent of established gamers will not buy the product.

Many posters ignore that simple fact. Due to the high price of the PS3 console by default the massive majority of gamers cannot consider the purchase. Everyone would love a mansion, but very few can afford it. Most people would love to buy high end electronics, but most have to settle for less. The price handicaps the console. Even the price of the games handicaps the console. Microsoft has been around in this generation long enough to have bargain priced games. Nintendo is fully backwards compatible, and their games are less expensive to begin with.

2. Hype is a speculative thing. However most would agree that this holiday season the hype is not with the PS3. Even with incredible hype last year the console had abysmal sales. The holiday shipment did not even sell out. Nintendo still has ridiculous hype consumers watched all year as it stayed sold out. Microsoft is going to have a few major game campaigns and cross promotions. I am not sure what Sony can do to get consumers excited. Hell they have down played this holiday season.

3. Sony is out of position. They have had a solid year of negative publicity. There is little doubt that educated consumers would be the go to consumer this season. The early adopters as it were. Everything this year will make those consumers cautious. They also have two other valid selections. A cheaper high end system that has a more robust library, or a low end cheap system with a highly finished first party lineup. Microsoft offers a online plan for competitive play, and Nintendo offers family friendly controls. Game addicts love to share their passion.

4. Technology is also of note or more specifically the ignorance of technology. There is not a single console manufacturer that has made a concerted effort to define technology for the consumer. We abandoned numbers a long time ago. The only numbers that we are given now is hard drive capacity, and disc capacity. So the ignorant consumer has little guidance. Throw terminology at them, and watch the eyes glass over. Say next gen console, and they will think all consoles are relatively equal. Hell the BluRay player actually hurts Sony here. The consumer thinks the console cost more simply, because it has a high def movie player in it. Thats not good especially if they do not have a high def television. Does anyone know can a BluRay player actually play DVDs?

I would like to see the race liven up, but if your betting on a PS3 surge you need to have some rational explanation. How will Sony counteract the negative press, and the prohibitive price point of their console. How can they tout the technology to the public. We have traded on name so long that the technology got lost. How can they differentiate themselves so they put themselves in a better position. This console definitely needs a catch phrase, or a good gimmick. How will Sony create excitement their add campaigns have gone over like lead balloons at best, at worst
they have caused controversy. Insinuating riots, decapitated goats, and surrealistic adds do not create desire to buy a console. A women on the can, a creepy baby doll, and a guy that baths armed just confuse me.

You need a better reason then a unwarranted come back, or these two or three games will make the difference. Everyone has two or three games. Very few gamers buy consoles for a specific game. Look at the N64 for guidance. Over a dozen unique games that hit solid tens in many review charts. Half a dozen of those came within the first year, and that console had a reasonable low price.

Sony needs to do something different, and if you speculate that Sony is going to make a major comeback you need to speculate a realistic how it will happen. What do you think Sony is going to do this holiday season that can turn things around. Getting tired of soft logic. I will entertain any notion as long as you have a theory of some kind. However the this game, or magical come back theory is proven nonsense.

 And that kids is called pure BS.

In Japan it did not. And by Dec 31st, there were tons of PS3s in stores in the US not selling very fast, which is still part of the holiday season (though not sure I'd count it part of the holiday shipment).

The reality is that not even all the launch units sold out in the US. I personally saw this with my own eyes. I actually saw launch units linger well into the new year. This is first hand knowledge you can take to the bank. This is a pristine expression. The units sat on a shelf and did not even go through a sales cycle. There is no play on definitions here the units were not sold.

I specifically chose holidays however to mean all the holiday shipments. There is undeniable proof that everyone accepts that this is a truth. I decided to do this so as to not incite some kind of rabid fanboy riot. Since I know there is a sort of pack delusion that all the launch units sold.

Do not believe the Ebay holiday fiasco. Had you taken the time to make the calls, been willing to check enough stores, and had a tolerance for a bit of a drive. You could have had a launch system at any time you chose. You can probably go lot searching right now and find a launch system. However that is more of a issue with rotation. Later shipments burying earlier shipments.

There is a difference between sold out, and effectively sold out. You need to learn that difference. I suppose it does not pay to be kind. The fanboys will attack you regardless.

@dodece,

1. The majority of consumers have a set price point at which they will consider buying a console. There is a reason the PS2 is still selling so well. No matter what games are offered or functionality there is this fundamental nature of the market will not change. The majority of consumers feel that the standard acceptable price is around two hundred dollars. Even at that point it is considered more of a luxury item. So if you say that holds true for seventy percent of gamers. Then when you get around six hundred dollars your looking at something like ninety percent of established gamers will not buy the product.

==> you are right.

Many posters ignore that simple fact. Due to the high price of the PS3 console by default the massive majority of gamers cannot consider the purchase. Everyone would love a mansion, but very few can afford it. Most people would love to buy high end electronics, but most have to settle for less. The price handicaps the console. Even the price of the games handicaps the console. Microsoft has been around in this generation long enough to have bargain priced games. Nintendo is fully backwards compatible, and their games are less expensive to begin with.

==> same here

2. Hype is a speculative thing. However most would agree that this holiday season the hype is not with the PS3. Even with incredible hype last year the console had abysmal sales.

==> hype last year ? in which world do u live man ?
hype PS3 was great from E3 2005 ==> E3 2006 : cinematic video of motorstorm and killzone2
hype was low during E3 2006 ==> E3 2007 : motorstorm in game shown + price 600$ OMG
media bash the system non-stop during 1 year. So NO, hype was not incredible ...

The holiday shipment did not even sell out. Nintendo still has ridiculous hype consumers watched all year as it stayed sold out.

==> ridiculous ? because Wii hype is HUGE, isn't it ??
Wii is not only sold out because of her hype but more because of her price and low Nintendo shippment (Wii is now a "rare" item increasing her hype). Seriously, wii hype is BIG

 Microsoft is going to have a few major game campaigns and cross promotions. I am not sure what Sony can do to get consumers excited. Hell they have down played this holiday season.

==> just put a video in every shop showing GT5/Killzone2 in game
For the GC and TGS, Sony need to focus on next year (as in E3 2007) since they will not be able to counter Wii (too cheap+ mario/MP) or Xbox360 (Halo3/Bioshock game of the year) with the exclusive games coming ON PS3 this winter (they are good but not enought). PS3 hype which is increasing since E3 2007 (because of poor Microsoft conference) and it will continue with TGS and GC.
And remember a lot of games are coming this winter on each side :
+ starter pack II : 60gb + 2 paddle + formula one + heavenlysword = 600 euros
+ BR that continue to kill HD DVD and spread on mass market (I know it is still far from DVD but it will help the PS3 : good console + BR for a good price considering BR player price) 

3. Sony is out of position. They have had a solid year of negative publicity.

==> sorry, u are late, bad publicity was BEFORE E3 2007, and dont forget Xbox360 failure rate that was just VERY bad publicity (in NA, Xbox360 sales number should be really bigger without a 30% failure rate).  

There is little doubt that educated consumers would be the go to consumer this season. The early adopters as it were. Everything this year will make those consumers cautious. They also have two other valid selections. A cheaper high end system that has a more robust library, or a low end cheap system with a highly finished first party lineup. Microsoft offers a online plan for competitive play, and Nintendo offers family friendly controls. Game addicts love to share their passion.

==> we will see if people buy the no-soul console from Microsoft.

4. Technology is also of note or more specifically the ignorance of technology. There is not a single console manufacturer that has made a concerted effort to define technology for the consumer. We abandoned numbers a long time ago. The only numbers that we are given now is hard drive capacity, and disc capacity. So the ignorant consumer has little guidance. Throw terminology at them, and watch the eyes glass over. Say next gen console, and they will think all consoles are relatively equal. Hell the BluRay player actually hurts Sony here. The consumer thinks the console cost more simply, because it has a high def movie player in it. Thats not good especially if they do not have a high def television. Does anyone know can a BluRay player actually play DVDs?

==> people that can put 500$ to buy a console know what is a BR, so it is ok.
The casual u are mentionning will get a Wii ... not an Xbox360 ("hey what means "hard drive ? why have u several sku ? what is different with the Elite ?")

I would like to see the race liven up, but if your betting on a PS3 surge you need to have some rational explanation. How will Sony counteract the negative press, and the prohibitive price point of their console. How can they tout the technology to the public. We have traded on name so long that the technology got lost. How can they differentiate themselves so they put themselves in a better position. This console definitely needs a catch phrase, or a good gimmick. How will Sony create excitement their add campaigns have gone over like lead balloons at best, at worst
they have caused controversy. Insinuating riots, decapitated goats, and surrealistic adds do not create desire to buy a console. A women on the can, a creepy baby doll, and a guy that baths armed just confuse me.

==> u are right, but since E3 2007 wind has turned. 

You need a better reason then a unwarranted come back, or these two or three games will make the difference. Everyone has two or three games. Very few gamers buy consoles for a specific game. Look at the N64 for guidance. Over a dozen unique games that hit solid tens in many review charts. Half a dozen of those came within the first year, and that console had a reasonable low price.

==> u are right, but PS3 will be an expensive system whatever the games they put on it.
It will, MAYBE, reach the 300$ in 2009 ...
Sony simply cannot target mass market right now BUT they can try to appeal Hardcore gamers+Core gamers that can put more money on a console. 

Sony needs to do something different, and if you speculate that Sony is going to make a major comeback you need to speculate a realistic how it will happen. What do you think Sony is going to do this holiday season that can turn things around. Getting tired of soft logic. I will entertain any notion as long as you have a theory of some kind. However the this game, or magical come back theory is proven nonsense.

==> HYPE an BRANDNAME  are sufficient (Microsoft cannot kill 12 years of Worldwide good marketing even more since they have -XX years on their side).

1/ Sony cannot  kill Wii on the casual market right now (except with PS2 + special paddle but I dont believe in this, it will not be sufficient), so PS3 cannot do anything against Wii that will continue to sell.

2/ Sony direct problem is : Microsoft!

3/ Brandname + hype ==> Sony side.

4/ Microsoft 3rd big nuclear weapon  : Bioshock ==> come to PC too with better controle : GAME OVER !

5/ Microsoft 2nd big nuclear weapon : Halo3 ==> Xbox owners targeted games  only = NA targeted game only = Halo fan already own the Xbox360 (80% Xbox360 owners are Xbox owners) = GAME OVER !!

5/ Microsoft 1st big weapon : GTA4 => Worldwide targeted game = PS2 owners targeted games = Xbox premium+GTA4 for 300$ = GG Microsoft

OH SHIT, the game is delayed to ...  early 2008+PS3's price cut+Killzone2+LBP+MGS+GT5 ==> GG Sony...

Nice summary and answers there libellule.Well done was a worth while read and i agree with most of the things you are saying.

 Ummm to be such a playstation fanboy... you should know that PS2 launched at $300 in North America in 2000.  Not $400.

I would really want to get that feeling , but I cannot . Im still afraid of Sonys fragile position in the market at the moment . Im shure it will recover at a time , but later he recovers , the more he will have to sell :?

Well said, could not have put it better myself. 

Now, can you save the text of this reply, and just post it EVERY time we get one of these ill-reasoned "This is it!  This is the month PS3 comes storming back!" threads that seem to pop up like crabgrass every few weeks?  We don't have facts this time, so now we're going on FEELINGS, yeah that's good.  Can "NE1" post a source link to the PS3 fanbase's "feelings"?