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In one word, Sony lost the domination they used to have in the last 2 gen and lost nearly 50% of market share (only HD twins) to its main competitor, Microsoft.

People say PS3 had a tough start, but didn't MS have? The original XBOX was a commercial failure sales wise, so to expand the XBOX brand with XBOX360 was also tough for Microsoft especially in Europe and Japan.

Just be fair to both of the most great competitors in the gaming industry.