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Nice post.

I don't 100% agree with it. But you had many valid points.

One point I would like to make is I think you are underestimating Software. Remeber the software Sony and Nintendo write is not just Media Center Live PSN, etc. They also write the SDK which developers use to write/code their games. If one SDK is much easier to use, then it costs companies less to make a game. And can anyone name a developer that doesn't like saving money?

But overall very valid points, Sony started off in very bad position "Price", but I think everyone has to agree that they are doing a great job and getting it down.