The only thing Sony did wrong was the price, and the price was the result of using Blu-ray. Obviously they put in Blu-ray to have long-term advantage but so far it's been more of a hindrance than advantage. It might prove to be a good decision in the future, though, but I guess it still won't reach their expectations. Blu-ray was definitely a calculated risk that both succeeded and failed. Personally I think Blu-ray was a good thing but financially it has cause problems.
Wii is not an issue as they target a different group of people. Then they have their old user base as well, but they aren't exactly huge (or against Sony).
Anyway, the PS3 would have been very succesful had the price been lower. We've still seen how strong the PlayStation brand is, even at the current price so it's probably safe to say with a lower price they'd be ahead of MS right now. And that doesn't necessarily mean being cheaper than the 360.
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