For me, and I believe for many high directives at Sony, Sony's failure was their inability to build on the PS2's success. It was their role to make a "Wii-like" console, they failed to see it. Remember it's Nintendo who's dethroned Sony. Sony could've easily made a PS2-based, PSN-enabled, PSP-compatible console with the approach and design to party/family/casual gaming Nintendo went for with the Wii. It would've worked wonders for them without a very high investment in R&D. They could've phased out the old PS2 without any conflicts, keeping their mass-market share and reinvigorate their brand. In the best case scenario, this would've prevented Nintendo to become a fierce competitor less a market king again. On the other hand, HD-DVD vs Blu-ray could have continued to the end of 2008 and beyond and most likely ruin completely all posibility for any HD format to be something else than another "Laser disc". Remember I'm asuming Sony made a PS2.5, so no Blu-ray at all would've made it into this. Of course, Sony could've pushed a lot more those stand-alone Blu-ray players without having to worry about any videogaming losses, they could've probably gone the "Toshiba way" selling the players at absurdly low prices to push for market adoption. Who knows where they'd be standing today, it's all now part of a past that never happened.
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