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From Sony's gaming division's perspective it was the worst move in their 15 year history. Without Blu ray they could have made the console $300 at launch the same time as the 360 and it would have dominated.

Say your back in 2005 and there was a $299 PS3 w/o blu ray available. Would you rather buy the successor to the best console ever, or the RRoD prone follow up to Microsoft's machine? I think you'd take the PS3.

But looking at it from Sony as an entire company, it could have been a good move. It depends how big Blu-ray becomes. If Blu ray ever becomes standard like DVD it would have been their best idea ever.