The PlayStation 3 is caught in a catch-22 in regard to software appeal and console sales.
Newsweek magazine's gaming blog reports that Namco is continuing to solidify its ties to Microsoft and is on the verge of signing an exclusivity deal for the Katamari sequel Beautiful Katamari on the Xbox 360.
The game in and of itself is not considered to be a deal-breaker for consumers, but it illustrates a growing trend whereby developers are choosing to either abandon PS3 exclusivity for cross-platform development, or simply abandon PS3 development.
Sony higher-ups have attempted to address the trend in a new online blog, where Senior Director Dave Karraker concedes his company's console is often more difficult to develop for, but only because it is more advanced.
A more pressing concern for Sony is that its monthly unit sales still continue to lag behind the competition - giving less incentive for developers to cope with PS3 kit.