Cheers for the interesting response.
I still feel that SCE is going to struggle and I honestly believe that Phil Harrison's recent public statement and actions are the visible proof that something is very wrong.
I'm not sure what that would be. Sony said they were very pleased with PS3 sales, and that they have exceeded expectations.
As for PS3 sales, Sony (don't forget that the company is massively in the doldrums in pretty much all of it's marketplaces and has once again failed to meet its profit expectations) needed the PS3 to 'explode'. Or to use your analogy: it needed to be the "hare". Why? Sony relies very much on its Electronic Entertainment and TV divisions to drive its profit and both have failed miserably to do so recently.
That's true, but they needed blu ray to win as much as they needed the PS3 to win (otherwise, they could have launched early and completely owned Microsoft again). However, I'm pretty sure that Sony realized that they weren't going to leap out of the gate with the PS3. It was extremely expensive to begin with and had a cheaper competitor with more games. Sure, they would have liked to have sold in Wii-like numbers, but that was never going to happen.
As I'm sure you know, the fact is that the PS3 drained the company massively in it's pursuit to be the most high end piece of entertainment kit possible and when the initial response was a 'meh', the fate of Kutaragi was sealed and he was quickly 'retired'.
What do you mean, "meh?". That is a view created by the media. Consumers obviously didn't care that much because the PS3 has sold at a faster rate than the 360 since launch. Sales have been solid. The PS3 was probably the most lambasted console in history, with thousands of journalists lining up to have a go at it, but customers have spoken. The 360 is a North American phenom. Outside NA, it's Sony and Nintendo all the way.
As a result Sony now finds itself in a position that it isn't used to - developers are hesitant to work on their 'flagship' console due to the high risk of recuperating their development costs, especially so in Japan - see the recent TGS for proof. (How many games are now multi-platform or even Xbox or Wii exclusives?).
Not that many. Most new games at my store are on both platforms. The PS3 is a wholly new platform with a radically new kind of processor. Of course there is going to be a learning curve for developers. However, the opportunity is too good to pass up. The first developer to make a hot game that truly takes advantage of the Cell is going to make a ton of money.
As for Blu-ray: Sony has deliberately kept the PS3 as the best and cheapest Blu-Ray player on the market (which is very much to the detriment of it's movie production wing) to try and sell as many PS3's to movie lovers in search of the best high-def player as well as to gamers after the latest and greatest piece of tech-porn. Now that the likes of Samsung, LG, Panasonic et al, no longer have to hedge their bets on the 'format war' that situation will change drastically and quickly. It will have an impact on PS3 sales, and conversely will have a positive impact on Sony Columbia sales. Being both a hardware/tech company and a 'content' company is one of the many problems and challenges that Sony faces and has so far not been particularly successful in addressing.
How many gamers don't watch movies? My PS3 gets as much use as a DVD player and media centre as it does a game console.
However, I hope that I'm wrong, as I would like nothing more than a 'cheap' PS3 with a compelling range of games (the chances of which seem to be diminishing rapidly with the removal of Harrison's guiding hand) so that I can finally buy the "latest and greatest piece of tech-porn".
Wait another year and you will have it. The PS3 will probably be sold at $299 by early 2009. But it is a good deal right now, especially since blu ray won.