I am a staunch supporter of Sony and I am appreciative of the fact that they have put in a lot of money and time to deliver a machine which is truly outstanding . Every day I read about the Cell B.E breaking new ground , proving again that the PS3 has a lot of horsepower which is currently underutilized . This is an argument I hear from the fanboys a lot , they say that the PS3 packs more power , has the next generation blu-ray drive and has the mother of all CPU’s in the Cell, and in the next two years it will kick everybody’s butt from the XBox360 to the Nintendo Wii and even HD-DVD . I seriously hope so because I wish well for the PS3 , but consider this ..
The PS2 currently has an install base of around 110 million and that is a monstrous number , if the PS3 had been launched alongside the Xbox 360 as a competing console in the same price range rather than a year later , The number of Xbox 360 ‘s sold would have been less than a million till date.I am sure 90% of the people who own an Xbox360 now have owned PS2’s before , and they bought their 360’s because there was nothing available in the market which could compete with it, If they had a better option from Sony they would have bought that. So was it a good decision to include the blu-ray player ? it would have been if Sony could deliver it on time and at the same price range of a 360 . but once they realized that it would not match the competition from the cost perspective and also would be late to the market , they should have gone with the standard dual layer DVD format , once they had the blu-ray diode mess sorted out they could have launched another version with the blu-ray for a higher price point . All this time without a competitor has given MS a good install base which third party developers just can’t neglect . If multiple platforms for DMC4 can move another 1 million units for Capcom then it makes sense to them financially, because in the end its all about the money .
Another factor is the cost .. here in India a PS3 costs Rs40000 ($1000) and an Xbox 360 basic costs Rs20000 ($500) , the difference is humongous , The consoles don’t sell in the millions here but if someone wants to buy one which one would it be ? any guesses !! . But I still have hope for the PS3 because all rumors point to a price drop of at least $100 , starting in June, the blue-violet laser diodes will only cost 900 yen to produce (about $8). Last year, the Blu-ray player itself was estimated to cost $125 — a good chunk of that was probably the diodes.
And that brings me to the last and most important factor – content , the DS sells far more than the superior PSP because it has excellent content available for it , the iPod sold 100 million because Apple has developed an entire ecosystem around the product , and likewise PS2 sold millions because of the content which came out for it over the years . When the demand for PS3 content increases , the PS3 will start to sell more.

I wouldn’t count the PS3 out because its an amazing piece of hardware and has had a good reception in most places it has launched , I won’t be surprised if it indeed emerges as the next gen leader

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