The PS3 was an unmitigated financial disaster for Sony. They took the best brand in gaming and turned it into a loss making money pit. There were two reasons for this. One was the cell processor. The other was BluRay.
C.
Being an actual PS3 owner, I'll tell you why Sony took the best brand in console gaming and flushed it.
The reason is neither the cell processor nor Blu-Ray. In fact Blu-Ray playback is one of the things encouraging people to buy. In fact I know people who are mulling over buying one primarily because it plays Blu-Ray and for the money they spend over the $100 Blu-Ray players on the market they can also get games.
The PS3 stinks because: games, games, games. The flagship Gran Turismo 5 still isn't out. Former exclusive game franchises are moving to X-Box 360. And when a game comes out on both consoles, the XBox 360 version is better. Most PS3 games are only 720p, and XBox Live is a far superior online experience.
Sony could come out with a $150 PS3 that drops Blu-Ray and it still wouldn't sell, because the games aren't there.