Sub 399, Move integrated... You mean if Sony made the Wii? 
But all kidding aside, they would probably be in a better position than now. Microsoft would still have the advantage of launching first, and because of the lower-tech PS3 they would have the strongest console for what that's worth. Outsold the PS2, most likely not, because that console had everything going for it. This Gen, MS would've still received the multi-plats and survived at least.
If they'd integrated Move from the beginning and had a Wii Sports type game for it, there's no telling what it would have done to Nintendo though. This Gen for them would probably have been a lot slower.
What's (basically) certain is that Sony wouldn't be in the same financial crisis as they are now. In hindsight, it was a stupid decision to make the PS3 as is.
