Looking at the big picture, it really came down to different philosophies.
"Let's offer the customer what they've been asking for" versus "Let's offer the customer the product we want to push."
Microsoft came out with a far-reaching plan that hinged on the future they wanted for home console gaming. Consumers did not like that plan and that was that. Nintendo's plan was less far-reaching with the Wii U but it still depended on features that no one really asked for, plus Nintendo failed in convincing consumers that it was a superior path.
Sony's plan was to show that they'd gone back to the standard path of refining and improving rather than radical track-jumping.
I also want to point out that there really was no reason to assume that Microsoft would dominate this generation. The PS3 had a better sales rate than the 360 and finished with more momentum.
