It is rather a conundrum, isn't it. But I think it's safe to say that Sony either expected Nintendo's disruption to fail again, or didn't even realize it was coming (which clearly isn't entirely the case, since they did attempt to integrate motion control in the SIXAXIS shortly after the Wii Remote was shown off). Working on that assumption, the PS3 would be following the same basic belief as the PS2 did (that it would be adopted readily and sell enough software to make up for the initial hardware losses), but with an added viral marketing side-effect to promote CELL and Blu-Ray use.
So I did mix Sony and Microsoft up, then. I wondered if I'd gotten them backwards; my first impulse was to say that MS was above third-party qualtiy and Sony was on par to slightly below, but I couldn't remember for sure if that was the case this generation or not. Looks like it is.
Sky Render - Sanity is for the weak.
