Sony could be doing much worse. I think Sega set a good example what not to do with the Dreamcast. Sony dominated the 5th and 6th console generation with 100 million+ consoles sold and the nearest competitor sold around 20-30 million. Just like the Nintendo 64 was a huge setback for Nitnendo, the PS3 is a large setback for Sony. Also like Nintendo, if Sony learns from their mistake, they can regain sales in the next generation.
EDIT: Yes I am aware the Game Cube followed the Nintendo 64. However, Nintendo eventually learned from their mistake.







