Lets put this in perspective.

Of the three console manufacturers, which one has been consistent with FREE backward compatibility?

Sony... (PS1 - PS2) of the hundreds of thousands titles in its library, only 2 - 4 thousand were unplayable due to peripheral s and special play mechanics.

If at most Microsoft having 30+ million Xbox Live users (xbox & xbox 360) how many Sony Playstation users have been online? of 100 million PS2 owners its much more then both Nintendo or Microsoft. And for free to boot.

How can the PS3 have failed?! Its only been 6 months! Have you seen the lineup of titles leading to 2008?

LittleBigPlanet in 1/1/08
Metal Gear Solid 4
LAIR
Ninja Gaiden Sigma (played the demo this morning :P)
Heavenly Sword
Warhawk
Home
Eye Toy

And this doesn't include the multi platform titles. This fall will be extremely good for the PSP, PS2, and PS3....oh wait thats my other point I guess.

If you look at Sony like Nintendo, everything is reverse. The consoles are two tier and the handheld is single tier. meaning the GBA and the PS2 won't fade anytime soon and the DS and PS3 get all the cool projects. The two consoles the developers are having problems with developing for are the PSP and Wii. But no worries the Wii will get the PS2 and PSP dev half baked spill overs.

This being said... the PS2 is still in the game. Look at the NPD sales God of War owned. Other gaming hardware can only wish to get a taste of that market share. As long as games are still being announced for it there will be amazing sales figures for that console. The PS3 is the little brother who has yet to learn the ropes. Sony so far has kept the pacing between titles really good. The Xbox 360 is going to have a tough fall. Halo 3, Mass Effect, and other top titles are slated for a release around the same time as GTA4 and thats not good. Titles will get lost and get poor sales. Why devs. are afraid of a summer release is beyond me. New Super Mario Bros. and Tekken Dark Resurrection had very good sales for that period.

A lot of the response the PS3 is getting is reactionary. If things go as planned Sony will be ahead in 2009.

Think about it. All the Sony first parties are hard at work at next gen versions of successful old titles and new ones.

Gran Turismo 5
Wipeout
Motorstorm 2
Resistence Fall of Man 2
Uncharted
SOCOM 4
MLB, NHL, World Tour Soccer, and NBA 07
Rachet and Clank (surprisingly Insomniacs second title in such a short turn around)
Killzone

Take that into consideration and the other companies seem to be standing still. The only failure Sony is guilty of is being too popular thereby bring uncalled for hate to itself.