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Actually the logic here makes sense. The PSX and PS2 showed that the brand was expanding and had no limit. Sony went with expensive tech for the PS3 because they had no reason to believe that it wouldn't sell even better than the PS2. After the Wii ate their lunch and the PS3 split second place with the Xbox 360 Sony now has no reason to believe they can easily gain the market back. They don't want another console that will be difficult to make their money back on. Going with less expensive hardware and focusing on software support is the smart move and is probably what MS will do too.