I definitely agree. If Sony had not been so obsessed with this blu-ray/HD DVD format war and they had released a sensibly priced console then things would have been very different. I think a $250 priced PS3 would have destroyed all comers based on brand name alone. As great and innovative as Wii is I don't think it would have had the momentum it has now if Sony had released a competitive console. Maybe Wii would have still been a major success but at best I think it would have been about 5 million ahead of PS3 rather than double in sales and over 15 million ahead.
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