The GC didn't sell because the mainstream audience didn't know it. Even with a 99$ this still was the case. The PS3 has the same problem and the pricecut (if coming - see Sony's condition) won't change that much either. It would work better than with the GC, but not so far to make the difference.

Those many great AAA games, who can't be ignored, aren't on the radar of the mainstream public, the only audience left. The word 'great' is extremely subjective.

@Squilliam, PS3 will reach 299$ price eventually.
Atleast till the middle 2010, definitely.

PS3 is getting 45nm Cell and RSX this summer. This will help to cut cost.
Also, recent PS2 price drop, and possible PSP price drop => Sony is in position to cut price.

For those people. who will want to PLAY
Killzone 2
Gran Turismo 5
Uncharted 2

The difference between 199$ and 299$ won`t matter much, since BOTH console will be in MASS MARKET price.
Also don`t forget FREE online.
Of`course 199$ price will have inpact on x360 sales,
BUT entering mass market price for PS3 will make BIGGER effect.
Don`t forget, that PS3 will still have MORE value at it`s price.
Actually best value for any 299$ costing console to date.

@kowenicki, it`s identical for MULTIPLATFORM titles,
BUT for exclusives, PS3 has MUCH more to offer.

Also, GC wasn`t very different from PS2/GC. It just had less support and less great games.
PS3 has enough games for ANY genre.

@Stefan.De.Machtige, PS3 has a STRONG PlayStation BRAND behind.
It still has a support in Japan.
In Japan, PS3 is the only 1 HD console of choice. PS3 i salready going otusell LTD GC sales in Japan by the end of this year.
MGS4 KZ2 LBP VC DS GoW3 HR U2 FFXIIIv and many, many others.

PS3 is a MUST HAVE console this gen.

in America = PS3

IN japan = 360

What about Others?

The unfortunate thing for the PS3 lasting past the begining of the next generation is that it is easier to design a cost effective product from scratch than it is to reduce the price of the product. We're already past the point in the generation where a company could release a more powerful gaming system than either the PS3 or XBox 360 and sell it for $300 without losing money; and as time goes on the potential "next generation" system will become less expensive and more powerful, and by 2012 the gap between the capabilities of current consoles and next generation consoles will be large.

Now, I think what plays the biggest role on the long term health of both the PS3 and XBox 360 is the fact that they're "Tied Together" and 90% of all games released for one platform are released for the other. If this continues for the next couple of years (which seems likely) and one/both of the HD consoles is replaced, it is likely that both the XBox 360 and PS3 will face a pretty large blow to their support and their ability to survive past 2012

You can believe what you want. Hey, free country. Wel at least mine, yours probably too. But this is a saleswebsite. You would expect some numbers or solid facts. Opinions do not equal facts.

Still a strong brand = a matter of opinion -  Must have = opinion. - Taste in games = opinion.

Since every generation untill now grew, matching the numbers of the GC doesn't mean much. It ended up with like 13% marketshare. What does it matter if the PS3 gets a bit more? Which still has to be seen, the current gen could last another 3 years.

To add to this, the 360 won't last past 2012 either, because by then, its successor will be released. Most of the 360's fanbase are core and hardcore gamers, and these gamers aren't going to stick with what by then will be a last gen console. They're going to jump right to the 720(or whatever its called).

The PS1 and PS2 were able to survive well into the next generation because they had such broad appeal that there were still plenty of casual/budget gamers out there who were more than willing to pick them up rather than head to the next generation, but this won't be the case for the 360 when the nextbox is released.

PS3 and 360 being largely a single platform for development plays a role, but there's also more in general the problem of the development environment. Most studios have just started getting up to speed with development on current gen consoles, they have mostly set up their tool chains and engines up to the second iteration and are now getting into the position where they can produce games in resonable times and with less costs than what happened in the last 2-3 years.

Producing a whole new powerful gaming hardware is viable, and still it would be a suicide when the software part is taken into account. Actually I think that both MS and Sony will "pull a Wii" with their next gen machines, if they want them to come out in the mid term instead of a long one (update the specs without revolutionizing the architecture, full back compatibility)

@Stefan.De.Machtige, time will show, 299$ price will show.

But you can agree, that for x360, which has 2x times less entry price, than PS3, outselling it only by ~20k is just horrible.

Your mistake, and also x360 fans, they think, that PS3 at 299$ wil be selling as bad as x360.

BUT it will sell better. PS3 is a family console, it`s not only a gaming machine, it`s also has a blu-ray player media features.
PS3 has much more value at 299$, than x360 - FACT.

Given that the average sale price of a XBOX 360 in America is $290 one would hope that throwing in a free bluray player would be good for sales. 

I guess we will find out in 18months when this $299 ps3 becomes a reality, by this time the XBOX 360 will be 5 years old.

I agree.

Xbox is such a strong brand in America (even the Original Xbox) so it should see continued support for years in its native region, the Wii will also see continued support as its the leading console.

The PS3 though ... Americans just don't get it