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Your Competition Doesn’t Exist
But you must look at the PS3's sales from another perspective as well, the PS3 has been an immensely successful console for the Blu-Ray camp.
Sony wants Blu-Ray to win since it brings, or rather said it will bring, heaps of money to them. If, as Sony says, the PlayStation 3 is a "long term investment" then in the case of Blu-Ray's victory over HD-DVD people will want a cheap Blu-Ray player, i.e. PS3. When more people star buying the PS3 as a cheap and reliable Blu-Ray player and media center then inherently more and more will gradually start playing games on it.
We all know consoles last ~6 years, and formats even longer.
So it could be a win-win situation for Sony?!
And have made many mentions of how their games will no longer fit to DVD.
So they're sticking by it.
Of course they said Rumble is last-gen and that it messed with the SIXAXIS motion, but they're backpedalling that one.
This is a big issue becuase with a down economy, people are going to look to get more mileage out of their favorite games. Wii and other competitors have embraced cheats and ways ti develop them, sony better shape up!!