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As I said, Microsoft can naturally only beat Sony if Sony fucks up or they get a head start. Sony can defeat MS on their home turf just like many Japanese or foreign brands do in their specific class. The Japanese tend to be better for pricing when it comes to middle class products that can do more. This is why American companies, especially after the economic downfall started focusing more on milage for the gallon and interior and exterior style like Toyota and Honda. Similar trend for Sony and Nintendo.