I think the PS3 has a couple of problems:
1) the price: most of the people who use the gamemachine are around 20 years old. So 600€ for the console + 70€ for a game is a lot of money (rich brads not included)
2) The PS2 is still selling good (SOny keeps it selling so it can cover the PS3 losts and not forget the PSP), So why buying the PS3, if the PS2 has a lot of new games coming out and is much cheaper.
3) Here in Europe Sony has the fame getting the European version ALWAYS later, sometimes almost a year. like The PSP did, and now the PS3. People are getting tired of waiting and buy a DS or Wii/X360
4) I remeber when I bought for the PSP Formule 06, they said it had online function, but on the launchday (26th of july), they said that they removed the online function, So a lot of people bought it thinking of playing on the internet...... Real bummer for me.... This is almost the same with the PS3, they took the PS2 chip away, to reduce costs... result: not all the PS2 games will work!!!!
I saw the PS3 yesterday in Mediamarkt, and it rocks, really it does. But for 600€ I prefer buying a Wii, with a lot of games....
Oh I forgot: For the online gaming you will have to pay, just like the Xbox.... Hihihi For Wiiplayers it is free.... thx to the BIG "N"!!!!