RROD is no. one. They showed that they can't build a good system.
Lack of first party support. The games I wanted to play were either on the PS3 or on PC. Why do I need the Xbox for? Halo? Please! Even Gears 1 is available on PC. I played the whole Gears 2 on my friends Xbox and that's my last game on it.
DVD is also a big problem. I guess it held the gaming industry back because developer could not expand their materials due to lack of space. Then they ported games to PS3 not other way round. So, it was always a 9 GB game from the third parties which made the industry go back even 5 years back.
No web browser is also a mistake. If you can steam videos over net, play games over net, even do chat (cross-game) over net, why the hell you can't BROWSE it?
