PS3 needs to drop price by $200 to compete
No one I know wants a PS3 right now and there are 2 reasons for this:
1. No great games.
2. Way too expensive.
They should have made the blu-ray player a $200 option like the Xbox 360 HD-DVD drive.
If Sony wants to push their proprietary format "Blu-ray" and is forcing us (PS3 buyers) to adopt their format, then they should eat the $200 cost of the blu-ray technology.
Once the price of the premium system drops to $399.99 like the Xbox 360 and they come out with some nice exclusive games. (Think: FF, MGS, GT5 to start with) then maybe they will have a shot. I stress maybe depending on how fast they drop the price and come out with games. (If this doesn't happen by Christmas then I feel Sony has officially lost. You have the Wii kicking the crap out of PS3 for the quirky "Japanese" controller and kid’s games and the 360 is mauling them with incredible mature games and a rock solid online network.
Sorry Sony, but you'll have either take a huge loss per console and drop the price or drop the built-in blu-ray disc production and make the PS3 a DVD system with an add-on Blu-ray player or just concede and drop the PS3 from your line-up (Stop the bleeding)