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KillerMan said:
Low spec PS3 (hardware between Wii and X360) without blu-ray and with 299$ launch price. It would have destroyed X360 easily in sales and they would have done profit from day one.

Good post.

 

I'd say they would have been the best bet. Or even if they made the PS3 technology equal to the 360 but with no Blu-ray for $299 it would be at least destroying the 360, if not the wii.