istockanalyst.com writes: The problems of the PS3 are multiple. It has a quirky new CPU architecture and a poor GPU which acts as a bottleneck, hobbling the capabilities of the machine. If this weren't enough there is the unavoidable fact that the PS3 isn't selling very well. We are in mid cycle now, the point at which sales volumes should be ramping up. And for the PS3, they aren't. The main reason for this is price, the PS3 is still vastly too expensive for the market and is cruelly exposed by the bargain that is the Xbox 360.
Sony are caught between a rock and a hard place. The PS3 design contained so many newly developed bits that it was, and remains, very expensive to manufacture. But Sony are not in good financial health so do not have the resources to subsidise a price reduction. Already they have lost billions on the PS3 project. It has proved to be probably the biggest loss maker in the history of video gaming.