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Of course they could have. But no company, including Sony and MS, could have met that demand. I think they did it as valiant possible, and it was unavoidable. Of course when you get to look at it from our perspective now we must see the repercussions of not meeting it, but still its the best they could have possibly done.

Not only that but this huge demand in 2007 and heightened shipments has at least ensured them a large competitor in this console wars if not an outright winner. Only consequence is that they couldn't knock the competition out in the beginning.