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I'd say it's slightly worse for Microsoft. Because, at least at the time, Sony had every right to be over confident. They had released the two most successful consoles of all time. But Microsoft is overconfident without anything really backing that confidence. Sure, the 360 was a success, but no where near PS1 or PS2 levels, and it's now even in last place of the three current generation.

So I think their overconfidence is very misplaced, and they even had an opportunity to learn from Sony's mistakes, yet they are simply repeating them. What Microsoft doesn't realize is that if they lose the American market to Sony and Nintendo, they'll lose about 70% of their audience. Yikes.