A mixture of both. Sony really made some solid gambles with the PS4, especially in regards to the GDDR5.
Nintendo on the other hand really made a big mistake that a lot of companies fall for. They rely on the casual audience, but don't seem to understand that the casual audience is not a viable in the long term. They hop to the next thing, which apparently Flappy Birds, and then it will be something else. Also the pricing model, and marketing confusion didn't help.
Microsoft didn't learn anything from the PS3 $599.99. People buy consoles generally because they can't afford PCs. I know when I was younger I would have been laughed out of the room if I asked for a $600 machine. Microsofts gamble with the always online and what not also really damaged their potential leverage in NA.
At the same time I also feel people underestimate the PS brand. Sony lost a lot of sales on the PS3 due to price. PS1 and PS2 were juggernaughts, and those fans didn't simply disappear.
