Anyone who thinks that Sony lost because of anything other than the 600$ price point, and even now the 400$ price point, is ignoring reality.
Although I completely agree that MS took advantage of the situation, Sony left themselves completely open to subversion by a) not helping 3rd parties b) insufficient dev tools c) not paying for exclusives
However, because of Blu-ray, they also won the next-gen HD market (the competitor was the MS funded HDDVD fyi), in which they are recouping millions upon millions, so it's not entirely a loss.
PLUS, I get great games out of the deal.
Note: It is also important to note that MS has still yet to break even since the release of the original Xbox whereas Sony is now making money.









