Jeremy Dunham, PlayStation editor at IGN is quoted in this Reuters story saying "The PS3's biggest opponent right now is itself. It's really just competing against its own PR."

This totally hits the nail on the head. I still remember the first PS3 appearance at E3 2005 and what magic people felt Sony is about to release on us. Sony is still struggling to even come close to those promises and expectations.

This new Reuters report is actually about Sony resolving the Sony PS3 shortage by May. I do not see a shortage. As reported on Saturday, online shops also have now regular stock of the 60GB PS3. Gamestop ships one to you within 72 hours.
Sony says they are on track to ship 2 million Sony PS3 consoles by end of March and by May there will be no shortage anymore.
Now that Sony has solved the supply issue, they need to focus on games that blow us away.
More Sony PS3 News.