I think Sony is in a mess at the moment too although they have more PS3 units in stores it's only because nobody is buying them. I went to Gamestop the other day and I saw a large sign that said "WE HAVE PS3 UNITS!"

Six hundred bucks is a lot of money and the average consumer doesn't want to spend that much on console. Maybe someday when Sony decides to cut the price of the Playstation 3 down to three hundred dollars, sales might sky rocket...but not now.