Developing games on PS3 is expensive, and having less then first projected hardware sales would only thin out financial expectations, hence resulting in less profit, perhaps even debt.

Securing profits seems to be the go with so many PS3/360 duel releases now,

But I don't think it's just these developers losing money, it's also video stores.

Today I went in to my local Video Ezy (Australia’s largest video store chain) and I asked why do you not stock Wii games for hire and only PS3?

The man at the counter said he has been asked many times for Wii games (and said they are definitely on their way for those interested) and then went on to say that the big gun on top of the food chain for Video Ezy poured a lot of money into all these PS3 games expecting the PS3 to instantly continue on the PS2's success and hardly anyone has come in to hire any of the PS3 games, big mistake? Yes of course.

So what happens from here? Now I'm reading all this stuff for HD DVD support over Blu-ray,

What on Earth could Sony do to save themselves, I don't know, but would it be worth while to make a huge price cut on the PS3, hence resulting in more Blu-ray movie sales (resulting in declining HD DVD support) and better games sales/support, and possible becoming winner of the format war.

Would this be enough to cover the loss from decreasing the PS3's price so much?

I don't know exact figures/costs etc, but I think so.

Damn heading typo, now my post will forever be incomplete.

I do think Sony will take another $100 cut sometime next year, but not right away and maybe not unless GTA 4 and MGS 4 fail to stimulate sales significantly (which is what I'm predicting).

Will that be enough to put an end to format wars and put PS3 in a much better position for sales and third party support? Maybe.

That video store management should have paid more attention to trends in videogames. I understand that Nintendo is woefully unpopular (and badly run) in Australia, but the lineups at E3 and the huge launch sales should have been a big clue.

The shakeup going on in the industry right now is definitely going to have a lot of casualties on every level, and a lot of success stories too.

Wow , I wonder when will a debate start ... I rather dont say nothing because I bet my post would be full of hatered then :P

It might not seem obvious, but look for a lot more casual titles on the PS3 when the price starts to come down. When the console comes down to $400 or $300, you start to get to the price range that would interest casual players, with the hardware capabilities to take care of the so called hardcore folks too.

$400 to $300 is not the price range that would interest casual players.

Are you sure about that Entroper?  Well, I would say that $400 might be if they bought the PS3 as a blu-ray player and liked to play games once in a while. 300? Even more so.

Even if casual players don't really like the PS3 at these prices, they would still like the machine at $300 or $400 more than our $500 60g model, which was my point.

Again, casuals don't want to pay for a Blu-ray player or 28 bucks per movie for a few extra pixels when they've already got a DVD player. The PlayStation 3 is not, and never will be, appropriate for the casual audience.

PS3 has become the quintisential, "how not to do a video game system" console.

What would the gaming market look like without Sony? Sony pushes the bar forward in gaming. If the only choices were the wii or xbox 360, I would be very disappointed. Yes, they are cheaper choice but they don’t push anything. They keep the gaming market stagnate.