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In my opinion, Sony should have delayed the release of the PS3.  It is a vastly superior platform to anything else on the market, with the 360 coming closest.  And could quite easily be classed as a generation apart from the Wii and 360.

Sony still has a huge PS2 audience and an growing PSP audience coming in around 22m worldwide.

I reckon that they should have taken a step back after all the delays etc and made a very serious decision to delay the universal launch of the machine.  BluRay players will undoubtably reduce in price over the next 6-9 months getting to a more realistical pricing along with the costing of the hardware involved.

Yes Nintendo and MS would sell a load of units, but there are always people out there wanting to upgrade to better model and if it was introduced worldwide in November 2007 they would probably be able to reduce the price significantly due to lower BR prices and have a bigger catalogue of games.  This would have given them time to get a huge supply of them shipped as well and if it was introduced around the $450 (£269-£299 in the UK), it would have made a killing. 



Prediction (June 12th 2017)

Permanent pricedrop for both PS4 Slim and PS4 Pro in October.

PS4 Slim $249 (October 2017)

PS4 Pro $349 (October 2017)