The numbers are in for the month of November and things aren’t looking too cheery for Sony. PS3 sales were just under 400,000, with PSP just over that number, but both together did not add up at how many Xbox 360s were sold, and didn’t even come close to the 2+ million Wiis that were bought. At the beginning of this year, it seemed as if Sony was poised to pull ahead of Microsoft in the race for 2nd place, but with the 360 dropping its price and growing its presence in markets that Sony previously dominated, it’s worrying for the company that not 3 years ago owned the market in a big way.

Sony has touted that the system is not in it for a short term gain, the “ten-year plan” that they are soldiering on is set to give them the same kind of strength that the PS2 has many years after the other companies have shifted to a new generation. The games are certainly coming along rather well, the online has only gotten better, and the bundles that they are offering aren’t that bad of a deal, even if it is a hundred dollars more than the next current gen offering. Blu-Ray is now the clear winner in hi-def video format, and the online store is pushing out more and more good content. What is it that’s holding the PS3 back in a market that is clearly willing to buy, buy, buy?

Analyst sez: HDTV’s lack of market penetration is partially to blame for the woes of their latest home console. Michael Pachter, frequent videogame economy evangelist, has predicting that a lack of HDTV sales means a lack of need for a PS3. It’s a compelling argument, certainly, with PS3 aligning heavily with the new home entertainment systems; high quality video (even though they still only provide composite cables with their system…come on, Sony!), surround sound audio and games that push graphical limits, it’s practically screaming for the HDTV addition. Sony certainly doesn’t compromise on that, which Microsoft has been more willing to do with their Arcade SKU, and perhaps consumers are reacting to that in a time when wallets are getting thinner.

The reaction from SCEA is a bit different than most people would expect. Instead of pushing for price cuts and taking a stab at casual gaming marketing, they have pushed out games as the forefront for their system and not necessarily the value that the system has besides. They have stated repeatedly that LittleBigPlanet was their selling point for the holiday seasons, and have now come on record saying the same thing about the recently launched PlayStation Home. It’s a bit of a scatter shot, and their focus is generally lacking from a lot of their real strengths in value. It’s still one of the best Blu-Ray players on the market, and has a lot of online benefits for the US market.

This is a bad time for Sony to start to decline in sales. It doesn’t stack up against last year’s numbers, and all signs pointed to success earlier in the year. It seems more of the perfect storm than anything lacking for the company, however. Wii sales are through the roof; more stock, still popular, great marketing and it’s not that expensive considering it comes with a game that is almost universally enjoyed. Xbox 360 just lowered its price for the second time this year and has put itself below Nintendo as a result, and has hit hard with casual gaming (even including games like Kung-Fu Panda and LEGO Indiana Jones with their consoles). Economic issues in the US, real or imagined for those with the clout to grab a console, still play a factor when going to the check-out.

It seems that Sony really isn’t losing momentum, as much as they are just not the right system for a holiday season where price is king. As exciting as LittleBigPlanet is to the PS3 crowd, it hasn’t started a fire in the mainstream, nor have other exclusive titles like Valkyria Chronicles. Both are awesome, both are not moving systems. Sony has yet to realize its killer app to draw in the same crowds that the others are seeing, but it’d be very shortsighted to count them out for the holidays. As their content online grows stronger, and if they keep emphasizing those kinds of entertainment points in their advertising, expect their numbers to be an improvement over last year. The ball is in their court, however, and how they position themselves against their competitors is critical in such a close race.