I think Sony got a big head from PS1 and PS2. They decided to make a platform that almost requires exclusive titles, rather than something that developers can easily port to. I work on cross-platform software (not games), and 90%+ of code we write works on any platform, because we can make certain assumptions (i.e. you have a CPU core available->you stuff a thread in it->it runs). With PS3's weird architecture, you can't do that. You absolutely have to write specifically for that platform. Because of this, it's just not cost-effective to port to PS3. And 256MB of RAM--you gotta be kidding me!