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Both companies were equally arrogant and stupid at the same time but for different reasons.

Sony was really smelling their success after the PS1 and 2. They totally ignored the competition and thought that brand loyalty was to strong for the competition to over come. Its very interesting the progression of Sony during the PS3 era. The company really grew up from that point and we are reaping the results. If it was not for Nintendo and MS having really strong sells and Sony having to go deep into the red, the Sony we see today probably would never exist.

MS off of the 360 was smelling their success to much as well and hiring managers who operate like the Xbox brand is on the same level as windows. MS continued to hire managers in top level positions who definitely do not know about the gaming market. You can see that a lot with some of the initiatives they have made during the X1 reveal. A lot of things MS put into the X1 really do not make a difference for the success of the console until it has reached a mass market price point. This is the real stumble from MS top brass. Price, gaming features and games are really what sell consoles this early in their release.

I have to say what makes MS mistakes so glaring today is the fact that Sony has been right on point. When I say right on point its their message. They have clearly taken advantage of every misstep MS has made and also switched gears to becoming a gaming platform by recognizing the indie movement and embracing it whole heartily. Sony has definitely been 2 steps ahead of MS this gen so it will be interesting if Phill can close the gap.