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They got it all wrong.

Bluray wasn't yet a requirement, it was a pain to develop for, it was far too expensive and it lacked committed 3rd party support to back up the extremely poor 1st party offerings. On top of all that, the competition were hitting all the right notes and pounding the PS brand into the floor.

What they managed to do through 2009 and onwards to push the console on with a revitalized 1st party, the slimline PS3 and Move launch to take back marketshare and hit Gen 8 on the front foot however, was nothing short of exceptional.