The PS3 right now is doing terrible. No matter what way you look at it, the console is selling dismally compared to the much older Xbox 360 and the newer Wii, which are now neck and neck. Sony's had a lot to say about why this is, though realistically the issue for them is low demand. Despite shipping more than enough units, the actual amount sold is just teetering over 4 million.

Despite that, Sony plans to put even more consoles onto the market and says they'll have shipped 11 million come March of 2008. Will more than doubling the amount of consoles available make them more likely to sell when shelves are already fully stocked? Somehow, I doubt that. Sony however is quite confident:

"We are planning various steps to support our software and hardware businesses ... I think we can do pretty good in terms of the target," Hirai said, when asked about an aim to double the 5.5 million units PS3s shipped the previous year.
I don't think doubling your unit output will help anything when your two biggest complains are price and game selection. Both of those Sony has the capacity to address but seems to be unwilling to do that just yet. Will they change their minds if another year rolls around and PS3 sales are still falling short?