Forbes: How Sony Should Respond to a Disruptive Attack (PS3 vs. Wii)

[Lord N]

There really is nothing that Sony can do about the Wii right now, so the best thing for them to do right now would be to ignore it(so to speak) and just focus on combatting the 360. There's still a decent chance the PS3 can finish second as MS has failed time and time again to "go for the throat", so if Sony can do this and the 360 fails to turn a profit again, MS probably won't be back a third time.

One thing for Sony to look at is where they messed up, and that's the price. Had the PS3 been released with all of these capabilities and features at $299, it would be a lot better off. That's not to say the Wii wouldn't be selling like crazy, but the PS3 would be selling a lot better. Nintendo has found something it can do well that Sony really can't counter, so the only way for Sony to respond is to find something it can do well that the Nintendo can't counter, and as was previously said, play to its strengths and come up with something that will drive people wild.

What that thing is, I don't know, but I think we can all see that charging people more and more money for technology upgrades isn't going to do it.