The prototype PS3, as you can see, was a little too big to fit in homes. Be glad that they shrunk the original version to the size that they did.
This building in Osaka, Japan represents what the Playstation could have been (probably not). But imagine if a PS3 was really this size? Would we have to travel to the central PS3 hub and connect our TV's to it, or would we have dedicated Playstation cables setup like city utilities?