I can't even imagine being a parent who has promised their kid a PS3 for Christmas.
I'd introduce my kid to the concept of not being able to keep promises. I'd have told him I couldn't fulfill that promise the moment they announced the price. Because that's what my parents would have done.
As for Sony PS3, I think it will do good, and later in its lifespan it will actually do GREAT. Once Sony can get its price down I think the system will take off, and as such the system will have a strong life of 5-6 years perhaps even 6-7 years. By that time though Microsoft will be prepping its new system again, and Nintendo will be readying its next system as well.
I disagree, Sony's current offer is not good enough to get a good start with securing parts of the market and as we know the games market is a self-reinforcing circle. By failing to gain the upper hand early on Sony will suffer from reduced game support compared to its competitor and they'll either have to drop prices prematurely or they'll be left behind by MS. Sony has to outperform MS by a good margin in order to undo MS's lead. They also have the image of being draconian and arrogant towards developers making those wary of Sony since Sony could interfere with their plans on a whim. MS is more predictable and all in all a better bet. Sure, Sony has the Playstation name but that alone won't carry the system, the games people associate with Playstation do. Look at the PSP, I think that's the fate the PS3 is going for. Developers are switching away from Sony, possibly because they don't want to be abused by them again. Sony's big name games could end up on the 360 along with a good number of exclusives. Really, the only big name series they still have left are MGS and FF. Nintendo alone has more than that.
For some reason I just imagined setting up a tent over a manhole and having people sneak into the sewers a half mile away an hour before the store opens and then coming up and out of the tent and pretending they were there the whole time. That would be pretty funny.
I don't know about the US but here in Germany the "manholes" are just sinks with a bucket (to catch leaves and such) in them and a 10cm pipe as a drain. I know because I had a job where I did a week or two of emptying those buckets.