The PSP was the beginning of hard times for Sony and the PS3 is going to make it worse before it gets better. A price tag in excess of $600 and only 400,000 units available world wide with no more being release until 1st quarter 2007. People are going to take their money and invest it in either the 360 which has a year head start, many more games and is less $$ or the WII which will have 4 million units available for Christmas and is half the price. Not to mention you'll be able to play pretty much ANY Nintendo game ever on it. It is directly compatable with Game Cube and all other games from previous hardware platforms are available online. It took 5 years for the PS1 sales to decline, 4 years for PS2........1 year for PSP sales to decline. I doubt Sony has broken even on that little piece of hardware. If they are not careful the PS3 high cost of developement, delayed release date, limited numbers, and uncertain future (as in they still don't know when or how many more they'll be able to release), and lack of new games - could really see Sony hurting.
Honestly as long as all your considered with is more realistic environoments and cooler graphics - well you're never going to grow your fan/user base. They need to take a page from Nintendo's book who've kept their R&D costs down and have really thought about the games themselves and have very successfully started marketing their games to everyone from 5 year olds to 65 year olds. Very smart move on their part. The games are what make the companies money - not the hardware.
