Both MS & Sony are being humbled by a machine they sneered at, and they are locked in a tight race for second. They both know that falling behind could seriously affect game developer interest, since neither is securely making a decent profit at this level, being last could ultimately make them the GameCube of this generation.
In that situation, irrational statements and spinning becomes the norm. Things like measuring the "Sony Family" against the competition, ignoring the fact that Nintendo could as rightfully add the Wii and the DS as the "Nintendo Family" and kick their butts even harder.
They've got very unhappy stockholders, executives worried about their jobs, unhappy developers who aren’t seeing as big a market as they were promised. It's called PANIC. It's like if you were the current White House press chief, you've not got anything good to report, you've screwed the pooch eight different ways, what are you going to do but smile and spin like a son of bitch.
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