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Lot's of pointless hate  (as one would expect)  in this thread, with some examples:

paulrage2 said:
I think that the memory RAM split in half 2X 256MB it was a bad decision. Also the PS3 launch price for sure!

Wrong, the point was that half of the ram was the very fast and very expensive XDR ram.

Proclus said:
Can't say anything beyond the CELL in the Playstation program really ranks up with the blunders has made as a company overall.

Wrong for two reasons. It was hard to code for but it did end up giving the best gfx of this console gen. And of course, consoles are supposed to have exotic/unique technology and not be stand alone direct-x boxes. Savvy ?

 

But back on track, I would say

1. The 600$ price tag for the PS3. They totally stepped on the good faith of their most loyal fans.

2. Losing Final Fantasy / Turning their back on their asian audience.