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Given that the PS2 sold more in the last year than either the 360 or the PS3, I would say it is far from being a poor business plan.

By covering both high and low-end markets, Sony actually managed to sell more home consoles last year than super-mega-hit-makers Nintendo, yet there are people who still prophesise doom for Sony and fail to understand the logic of their strategy.

BOTTOM LINE: They are better at business than you are.