It's all a matter of perceived value vs. price.
Sony made a console with a high price and evidently not a high enough perceived value. They got a lot of bad press until halfway through '08 and releasing in the same generation as the Wii (which has changed the game of 'increase the power' that has been running since the NES) didn't help.
Also to whoever said Sony hasn't lost anything. What? Have you read their financials or compared their marketshare? Sony lost a lot this generation, though its not entirely their fault.








