Well here is 10 reasons why some people think it is:
10) Too many and confusing SKUs,
9) Controller SNAFU,
8) Sony arrogance,
7) A developer's bag of hurt,
6) Very expensive manufacturing costs,
5) Still no strong game library,
4) Weak ports,
3) Killer apps are too few and too late,
2) Still the most expensive console and
1) Loss of exclusive titles.
IMO this is a joke I do have my own opinion why the PS3 is failing:
i think once the components are cheaper, and they bring the price down more, it will be affordable and wont be "failing." .. its a very capable machine but when parents buy a console for their kids.. are they gonna buy the cheaper one or the more expensive one if they dont know what their kid wants..
Good point, but current trends look like the ps3 would rather shed off components until all that's left is a overly basic model than wait for components to become cheaper (i.e. the 80GB CECHExx has 4 usb, media card slots, and ps2 emulation, whereas the CECHKxx only has 2 usb, no media card slots and no ps2 emulation).