tongue_of_colicab
Veteran
Both size and price matter in Japan more than anywhere else, I think, but by far the most important issue here is the price / sales curve. I think the PS3 is at the foot of that hill, and the Wii has been launched closer to the top.
However, some part at least is due to Nintendo having captured the hearths and minds of Japanese with the DS, much more thoroughly so than in other regions even.
DS is pretty much owning Europe too, not as bad as Japan but selling 250k a week isnt even close to funny anymore.
Anyway I agree on the price, not so much on the size though. If you put it up vertically, how much more space does it needs than a ps2? not that much. Even if japanese homes arnt very big I doubt they'll make a problem about a couple of square centimeters. Especially since you put your console close to your tv anyway so you waste very little ''living space'' if any at all.
And even if size matterd, I doubt sony could do something about it. You got a console with alot of fast and hot parts, not only do you need a bigger board because they put more on it (along with HDD space etc) you also need a nice big cooling system to keep it running, wich takes up alot of space. I think ps3 is about as small as sony could make it without having to spend even more money on making the chips more efficient and better cooling.