I'm not trying to come up with gloom and doom scenarios here. I'm just pointing out that it is possible.
Oh i agree, everything is possible! I just don't think PS3 will "fail" if Sony can keep certain games exclusive to them.
Then again, everyone seems to have different ideas of "failure" so...
Personally, if Sony can sell 50M PS3s at the price, i wouldn't say PS3 is a failure.
I would only consider PS3 a failure if MS can get certain franchises on 360, mainly the Final Fantasy, Kingdom Hearts, MGS, Dragon Quest and other games that are exclusive to Sony at the moment. That will be the blow Sony might not be able to recover from in the long term.