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RolStoppable said:
Even in this hypothetical scenario Sony and Microsoft wouldn't be able to compete with Nintendo without losing money.

Also, why is this PS360 console only getting the advantages of the real PS3 and 360? If it got Bluray, it wouldn't have released before late 2006, including initial supply problems and high price, giving the Wii a 2m lead by December 31st 2006.

Early PS360 games wouldn't have had the chance to recoup development costs which would have led to 3rd parties delaying games to have a bigger userbase to sell to. Without a consistent flow of games, hardware sales of the PS360 would have been sluggish and the Wii would have pulled farther away.

I am too lazy to continue with this post.

 

You bring up an excellent point. One of the main reasons the 360 didn't have HD-DVD was that it was cost prohibitive for the 360's 2005 launch. Blu-Ray cost more than HD-DVD. This hypothetical system would have launched in 2006 and without the head start of the 360 would have gotten absolutely steam rolled by the Wii.