I know 25 XBox owners locally in our immidiate circle of friends/family - 2 have an XBox 360.... price did this... the XBox 360 is too expensive for occasional console gamers.
The PS3 needs to be priced accordingly... as all these same people are PS2 owners, and have said as long as there is a decent launch title - they will buy one..
Looks like no matter what Micro$haft are losing ground to Sony.