PlayStation 3 dead in the water?

For a while, it looked like Sony had an unbeatable console in the Playstation 3. At their E3 2005 press conference last year, they first showed off the console along with a few tech demos, a playable early version of Unreal Tournament 2007, and a number of game concept videos. Everyone who attended that conference thought that the PS3 would easily be the champion of the next-gen console wars, despite the year head start of Microsoft's Xbox 360 and the low price and low development costs of Nintendo's Revolution.