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LOL at everyone judging the PS3's long term results based on its performance from 0 to 8 months after release. The 360 has been out for an extra year and is blurring everyone's vision.
The PS3 is going to get better and better. Recently released firmware upscales DVD's and old PS2 games, Ninja Gaiden was just released and got great reviews. Sony is not about to abandon this thing when it's only just now getting some legs under it.
Price cut was dismissed as a rumor today:
http://news.com.com/Sony+has+no+plan...3-6195127.html
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I didn't say they were giving up on the PS3 or withdrawing from the market or anything like that. However, it is very safe to say that the PS3 is not taking off nearly as well as Sony as hoped (of course they will not admit this and try to keep all their press releases as positive as possible).
If you look at reality, both the 360 and the wii are blowing the PS3 out of the water. PS3 is going to be the gamecube of this generation. Big enough to get some good games and enough supporters to keep it going for the time being, but Sony has definitely lost several steps, and with how good the 360 and wii are hitting each day is going to make it harder and harder for the PS3 to catch up.
I'm not saying 360 or wii is better than PS3, PS3 could very well be the "best" system, but that does not mean it is going to succeed. There are also such things as price and how it is marketed. You could say apple has the "best" computers, but that doesn't mean they dominate the market.