Well the PS3 has taken a small blow in the last week with the announcement of less units shipped on day one. However, it is all relative. The PS2 launched with only 250K units on launch day; by comparison the PS3 will have 400K on launch day. The 400K is 40K more than the X360 sold after a week.

Everyone has read this or something like it by now. The reason people are focusing on it is because much of Sony's success will depend on how they can meet their hardware demand. If Sony truly can deliver 6 million units by March of 2007 then there really isn't a problem; 6 million shipped will be 6 million sold at that point.

However if they falter, then the leads by MS and Nintendo (gasp!) only become greater. It should be pointed out though that consoles don't hit their stride until the 3rd of 4th year of their lifespan. Christmas 2007 is much more important for Sony considering the big guns (MGS4, FFXIII, GTA4, DMC4) that is has coming out next year.

Also with studios adopting the VC-1 codec for Blu-ray recently, Sony's vision of the future and HD may fully be realized. Their decision to go with Blu-ray will likely prove wise as into 2007 and 2008 more people buy HD sets. Now if they can only bump their price down $100...