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The thing is that Sony's plan for the PS3 went down the drain because of four key factors:

1) Delay and cost of the PS3;
2) Microsoft beat everyone to the market with the Xbox 360 gaining one year head start, forcing specially Sony to play catch up;
3) The unexpected success of Wii which let both Sony and Microsoft battling for only half of the market since Wii, continuing the current sales rate, will grab 50% or more market share;
4) Very important: Unlike the previous generation where the PS2 was alone with no worthy competition, this time the manufacturers are being forced to dispute publishers trying to get exclusive titles and support for their consoles.