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This is what I been thinking, "... a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy." From above article.

 

Xbox aimed for PS this generation, we all know they have compared themselves to PS, claiming they are beating them, etc... Against a huge corporation like Microsoft, any market they get into seriously means trouble for the rest. You know right when MS said they are making a game console, Sony and Nintendo pooped their pants. Nintendo knew they can't compete with MS head on, will just be stupid to go against the biggest company in the world.

Sony however went against MS Xbox, MS can do multiple things with their money. Rush production to get a console out early, buy games in some way, numerous price cuts anytime they want, implement new changes to match other console features, ads left and right.

 

Sony went against Microsoft and is losing. MS just didn't expect Nintendo, they have done changes rapidly with their money to copy Nintendo (not just copy but improved- 'avatars much more detailed) but its a little too late. I won't be surprised if next gen MS is 1st, they will have a console right off the bat that has copied Nintendo and Sony.