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PS3 simply got better than xbox did as time went.
I think games was the biggest factor...MS/xbox invested mostly in timed exclusives, Sony/PS3 invested in proper first party developed exclusives.
The 'ps3 has no games' didnt really matter because at the time it had no games, hardly anyone could afford one.
PS+ was the KO punch.

It really is surprising how wrong MS would have to go to lose against a machine where third party devs were not even doing 720p...Lets hope Sony doesnt go that wrong with the PS4.