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The vision isnt exactly wrong. They were preparing for a digital future.

What was wrong, was the execution. Rather than easing into it they went full on, aiming the console at the high-end consumer and ignoring a large part of the market that made the 360 do so well. They introduced exciting new features, that were simply restrictions.

The ball was in their court. They fucked up. The consumer let them know through preorder numbers. They had to change, to stay relevant.

Sony have the same vision, its just Sony are easing into it with PS Plus.