OT: Hard to say who screwed up harder between Nintendo and Sony. Nintendo has never been able to win back the core gaming crowd or the big million-seller franchises like Final Fantasy, Metal Gear or Castlevania. If the N64 had used a disc format, that generation may have been more akin to the SNES/Genesis era.
My inital thought was that Sony's screw up with the PS3 was less hurtful, but you have to remember that it had the video game industry by the balls with the PS2. It lost tons of marketshare and took its foot off the necks of Nintendo and Microsoft, but more importantly, it lost tons of money! Anyone recall that chart showing how Sony blew through all the profit from PS1 and PS2 combined from the PS3 blunder? Combine that with its struggles in other divisions, and you have a corporation in big trouble, and very little margin for error.