On top of the slew of reasons why the PS3 will fail and will push Sony into chapter 11, Sony has recently ensured this final destination. While many PS2 games fell within the $40-$50 price range, many PS3 titles will be priced from $75-$100. In addition, the $100 price cut that Japan will see on the low-end PS3 model will not be offered outside that market. Some analysts feel that such a price cut is a sign of weakness.
Rumors have also been circulating regarding the PS3s DRM. Rumor has it that PS3 titles will be serialized and will lock down to the first console that they are played in, effectively eliminating the possibility of rentals. This also removes basic consumer rights, such as the ability to sell, trade, and loan PS3 titles. If such rumors prove to be true, Sony will have to rely on the ignorance of the average consumer in order to move consoles. With a $600 price tag I just don’t see that happening.