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Price, less games, and multi-plat that is better than your expensive system.3rd party PS exclusive that went multi-plat. FF, DMC and etc.

to summarize: Price and games was the big factor.(bolded the most important)

 

Now fast forward to 2013 PS3 is selling great right now because of what? Games No matter how innovative the console is, if they can't back it up with games then it will be useless.