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Icey7 said:
To simply answer the question I would say yes.
Sony's strategy with the PS3 was simply wrong IMO.

There are several key factors:

Time to market: I don't think Sony were late, it's just than Microsoft pulled out the stops (cut corners) to get a one year advantage.

Price: As with many others here I agree that the initial price point was too high - this in turn would lead people looking to upgrade to buy a 360 instead. Whilst I do think BluRay was the right choice, the card readers and 4 x USB were overkill.

Cell CPU: A very impressive CPU for raw performance but I don't believe that makes it a good CPU for a games console. Not only did this impact the price of the PS3 but also the many complaints on the difficulty of cross-compiling games and hence 3rd party support.

RAM: 256MB + 256MB appears to have been a bad decision. Either a single 512MB addressable by both GPU and CPU or since they were happy to over spec 512MB + 512MB would have been nice.

Backwards Compatibility: If cost effective then either have it from the start and make sure ALL territories get it! Or don't have it at all.

im stealing this post cause its so full of win.