Yes...entirely.
1 - It will be a harder sale because there's more than one system available this time around. The 360 was the ONLY thing last year. The PS3 is going against the MUCH cheaper Wii, and the 360 with it's second gen software, as well as most the games the PS3 is launching with. People now have a choice.
2 - The bad press is not helping Sony. Regardless if it's rumors, true, mistakes, whatever. The negative feedback is gonna hurt them.
3 - People have already bitched about the retail price. You think they're gonna spend double for it?
4 - Regardless of how much profit was made on the 360....$1,200 is $1,200. If you think that every PS3 will sell for double it's amount...you're crazy. It's not a guaranteed market. Especially with the conditions being so different this year.