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Sure they had competion, back in 2005 the PS2 was still a beast. Also the incredible hype of the mysterious PS3 and the Wii was in the air and people waited till they came out to decide. There is always competion. Back then, all you could see of the PS3 were incredible tech demos that were all CGI and fake but people believed them back then. Go back and watch Sony's E3 2005 press conference and you will laugh yourself silly today