I think Sony was expecting the PS3 to be significantly more powerful than any console in its generation... Microsoft surprised them by releasing the Xbox 360, which seems to be neck and neck with the PS3 in terms of overall hardware capability (even if the Cell gives the PS3 some advantages which will take long to be realized, if ever, and which are not applicable in all the areas due to high specialization of the SPEs).
Unfortunately for Sony, Microsoft gave developers a big advantage on the software level. This gen's (let's stop calling it next-gen) games are very expensive to develop, and Microsoft's development tools can ease the pain a bit, and probably reduce the number of developers necessary to produce a game.
My Mario Kart Wii friend code: 2707-1866-0957
