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I thought Sony said software emulation was the plan. The hardware solution was late coming because they could not get it done in time (they still don’t completely have it done). Emulating the PS2 is a hard thing to do.

As for how could they get these new models out so fast, well, because they are Sony. The reason XBL kicks the crap out of Sony’s online offering, is because MS is a software company. That’s what they do. They do it far better than Sony. Sony makes hardware, and they are very good at it. It’s why the PS3, purely from a consumer electronics point of view is so great, it’s plays to Sony’s strengths. They know how to make devices that don’t fail, look good in a living room, and how to reduce costs with latter models. They were doing it long before there ever was a gaming console in anyone’s house. It’s what they do.

Sony released the PS3 WAY before they wanted to, and WAY before it was ready. I blame MS for this. MS’s strategy was to beat Sony to market. Fine, and it would have been brilliant of MS did it right, but they did it at the expense of the consumer. They released a box that has a 30% failure rate, and sounds like a jet engine in your living room. If MS would have taken the time to make their box right, they would have released it 6 months to a year later, and it would have worked better (better for all of us), and Sony would have had more time to make the PS3 what they wanted it to be in the first place (better for all of us).

MS knew they had inferior hardware, but also knew how bad it would shake up Sony if they did what they did. They hurt Sony at the expense of the consumer, and sorry, but I think that’s a crap move for any company.

So, my guess is the PS3 was going to be what the 40 gig is now, with total software BC. That was the plan from the start, imo.