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1. No CELL as people have said... should've launched in March 2006 like originally planned at one SKU of $399
2. Make the system easier to develop for
3. Keep exclusives... GTAIV and Assassin's Creed could have been at the minimum timed exclusive but Sony said NO to Take Two and Ubisoft respectively. Then Sony lost Devil May Cry, then Tekken, Final Fantasy, etc. etc.

They would've been huge system sellers. They kept MGS4 and look what MGS4 did, it made the PS3 somewhat respectable back when it was laughed at.

4. Stop delaying so many games too... it seems that every exclusive PS3 game has been delayed from Heavenly Sword to LittleBigPlanet to Gran Turismo to Metal Gear Solid 4. The games needed to come fast and hard like the PS2.

The Xbox launched in November 2001... so how did Sony respond? By having a ton of games released in 2001... Final Fantasy X, Devil May Cry, Gran Turismo 3, Twisted Metal: Black, Jak and Daxter, Metal Gear Solid 2, Half-Life, Grand Theft Auto III... Sony came out of the gate with domination by the PS2 and showed no mercy to its opponents.

On the other hand with the PS3 Sony let all their third parties go to the 360 and even the franchises that are still with the PS3 exclusively were scattered throughout the generation instead of dominating out of the gate. They say "first impressions mean the most" and the PS3 had a VERY poor first impression.

It all came down to this:
- Price
- Release date
- Lack and loss of exclusives
- Lack of exclusive "killer app" (PS1 had Final Fantasy 7 while PS2 had GTAIII)

Sony had a chance to steal momentum from Microsoft (the Xbox 360 came out of the gate pretty poorly actually) but did not. E3 2006 Microsoft stole the momentum and then the game was on and Sony was lost.