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VanceIX said:

What I meann is that without the 360 the PS3 would have steamrolled the market, regardless to the price. This would mean Sony would have felt comfortable making another console that was a bit too innovative, and selling it at a higher price point. Nothing like the PS3 where they lost money, but if they managed to move a lot of untits @ $600, there is a very good chance that the PS4 would have been priced similarly.

Hmm, fair point, but I'm not entirely certain myself.  I think there's a fair chance the PS3 still would've floundered for a time, given the worldwide recession that was deeply effecting consumers at the time of the PS3's launch and up to present day really.  At the time the entrance fee for an HD living room was a hard sell to people struggling to make ends meet.  But, ultimately, I think you would've seen more PS3 sales sure.

Still, I think a more apt comparison/judge of competition is PSN vs XBL, the groundwork that Microsoft laid during the initial years and turned into a definite game changer during the 360's years, and then Sony's response w/ the evolution/growth of PSN.  Not really a huge deal either way heh.  Both points basically amt to the same thing...competition is good :)