If Sony made a sub $399 PS3 at launch- would it have outsold the PS2 and force MS out of gaming?

[Kinneas14]

I would say yes. The only big problem for the PS3 was price.
If the PS3 would have launched for a lesser price, with the huge amount of hype surrounded it back in 2006, it could have sold amazingly well, and it could have kicked Microsoft out from the gaming market.

EDIT: Well, obviously, PS3 would be less powerful, and with less capabilities, because  Sony lost LOTS of money with the 599€/$ price. So they couldn't afford a lesser price for the same hardware as it is now.