I don't know in UK (your location), but i can't disagree more for France. Price is the primary factor.
Well the UK does make up roughly a third of the European market.
Reeves was quoted as saying sales in France and Iberia were strong, wasnt he? Guess I was wrong regarding price sensitivity in France. Still I'm expecting Sony to get the PS3 down to £325/£350 before the end of the year. I believe some form of GT will be released aswell, and its still the biggest franchise in the world. That along with Pro Evo, GTA 4, Heavenly Sword and Uncharted should help boost significantly.
Certainly the PS2 sold well at £300, in the five months before the first price-cut (which I believe was £30). Given what the PS3 offers (multimedia-wise) above the PS2, I expect UK sales to be strong when the these games are released.