It was unimaginable that Sony could lose its video game console lead over Microsoft and Nintendo, but it appears this is exactly what is happening. I won’t bore you with a rehash of the many mistakes and foibles Sony has committed, but the latest story out is that the PlayStation3 will be 10 percent less powerful than anticipated. With none of the grace of the Wii and only moderately more power than the 360, I am left wondering who on earth will buy this machine–and that’s before you even see the $600 price tag!

Last week or so, the big PS3 story was that because Sony had not started producing the machines yet, there would be a massive shortage at launch. I doubt there will be a shortage, and that’s not good for Sony.

Regardless, Nintendo, and to some extent Microsoft, is making it difficult for a responsible young man like myself–and one who recently gave away most of his classic video game console collection–to not buy one of the new consoles.

Oh, and expect Sony’s stock to get rocked more than the 3 percent or so it has this week. About half of Sony’s revenue is PS-related.