I purchased a PS3 (as GoldenPhoenix well knows) almost 2 months ago, and honestly I have very few problems with it. I waited through GDC to see if the price would drop, and when they didn't I purchased a refurbashed one off Ebay (which works great, by the way) with backwards compatibility for (when you put together the added accessories of the Blu-Ray Remote; the HDMI cord; an extra controller; and a PS2 memory card transfer unit) not much more than it would have cost me to buy a new PS3 with no backwards compatibility, and it would have been less if I had forgoed the accessories. That's money Sony didn't get from me because they dropped backwards compatibility and wouldn't drop the price of the system. Time and time again we see that dropping the price on things increases sales, and I just don't see how Sony can afford to operate like this with the economy what it is.
The thing about the PS3 price, though, is that I can see Sony's point of view on the thing: I paid just a little over $400 combined for the full experience, and I still feel like I got a good value. Hell, it's certainly been a better value that I've had with the Wii over the past few years, with (in my opinion) its relative handful of excellent but short and usually-shallow games. It's just hard to sell people on the PS3's value when you have $60 games, most of which are available on the cheaper 360 for the same price if not cheaper (360 games seem to drop in price a lot quicker for some reason) and negligible graphical/audio differences. I've lucked out that with proper planning and strategic use of store credit I've yet to pay more than $40 for any of my games, but to me that tag stings more than the hardware cost.
This may sound like a bizarre and unreasonable idea, but what if Sony did the following:
1. Bite the bullet and do a $100 price cut on the PS3 main model. Release a model at the existing price as well that has PS2 backwards compatibility for those that want it (unfortunately, I don't think complete software emulation of the PS2 will work as it does for the PS1).
2. Work out a deal with developers for the PS3 that will relax the licensing fees for developing games on the platform. I think Sony could make some real headway if they could undercut Microsoft with $50-$55 games, especially since the two have a lot of multiplatform releases as it is. The higher sales of those games would counterbalance the lost revenue from the licensing fees.
3. Sony needs to stop being so arrogant. They're not Number 1 anymore, and they're not going to be anytime soon. Compared to Nintendo and even to an extent Microsoft, Sony comes off as cold and unfriendly, which doesn't endear themselves to customers or developers.
Ugh...I can feel myself rambling without a point in sight. Damn 14-hour work days...and it's only going to get worse very soon. Basically, the PS3's a great system that Sony has allowed to get overshadowed by its price through truly terrible Public Relations and Marketing. Until Sony changes its attitude and business strategy, that's not going to change.