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you guys is fighting over the wrong thing... I have to say, SONY isn't BEHIND, they are too far ahead, that NO ONE CARES... honestly, Sony with their PS3, and ideology is too ahead of the current market trend...

1. They expected more adoption of HD which also hindered PS3's adoption rate.
2. They did not expect such huge credit crunch in the world when they decided on the spec hence the price of the console has been huge factor in the adoption rate.
3. They expected people would synergize PSP and PS3, but our technology is very limiting especially in terms of pipe bandwidth... PSP and PS3's remote play if done "correctly" (perfect streaming of PS3 game via web from any place in the world) sure would be a revolution in the ways we'll see home console stuff.

Honestly, Sony isn't behind the market, it's just that they are too far ahead in the future to see the current needs. As for staying on topic, yes, they did shoot themselves in the foot this gen, not because they are lacking anything, but they are giving TOO much.