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As far as downfalls go PS3 really isn't bad of a dip and only lost to the 360 in America and the UK. Essentially all things remained stacked in their corner with playstation brand being dominant in most of the world. They just they just learned from the mistakes of the PS3's mistakes whilst capitalising on its successes (first party, perception of power).

It helps that Microsoft messed up with the Xbox One's $500 entry price and pre-launch DRM drama.