I have had a revelation. Sony isn't trying for 1st place in the console market, they're just trying to get a lot of BluRay players out there. The Cell processor is complicated enough that we'll see the capabilities of games grow over time much as we did with the PS2. First-gen PS2 games don't compare well to, say God of War and FF XII in terms of graphics.
By the time Microsoft and Nintendo are thinking about launching their next consoles, they'll have all the problems a console always has at launch (high price, few games). And the PS3 will be out there with a large installed base, dozens of good titles in the value packaging and their third generation games announced and being marketed if not actually sold. XBox 720 games will be up against MGS5, FF XV and God of War 5. They'll pump advertising into the games, not the console and sell as well against the next gen as the PS2 did (and is) against the 360 and Wii.
They're going to win the next console war and tide themselves over with BluRay dominance. Not a bad strategy.