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makingmusic476 said:

But honestly, launching late isn't that bad of an idea, so long as you have the power and lineup to back it up. Look at the ps2 and Dreamcast.

The issue with the ps3 was that it came a year after the 360 and was categorically inferior to the 360 in almost every way at launch. Weak network, no in-game XMB, weak first party line up (thanks to Sony focusing on ps2/psp), multiplats that looked better on 360, all for a much higher price. All it had going for it was Blu-ray and far off games like MGS4.

If they can launch a year late with an obvious hardware advantage, a strong first party launch line up (Uncharted and Killzone within the first half a year, for example), and multiplats that are obviously superior on their platform, I think they could pull it off. The refinement of Cell and Blu-ray should allow them to create a powerful successor to the ps3 without the crazy overhead they suffered from last time, leading to a cheaper initial product.

They can't afford to launch late next generation because they are third. With this generation they could have come in at any time and people/developers would have waited for them. This isn't the case anymore, if they come in late then they risk seeing Nintendo / Microsoft / Both developing a massive lead which they will not be able to overtake. Consider the 3DS lineup of games, is there any reason why Nintendo could not repeat that feat with the successor to the Wii?