And yet even when the price was beyond “market acceptance”, the PS3 was still on pace from day one to outsell the 360. So clearly Sony didn’t fuck it up that badly. They’d built up a big enough fan base with the PS1 and PS2 that even a big flub like that launch price was not that big of a deal.
And no, MS didn’t solve most of their issues before launch. Their biggest market is the US and even years after launch it wasn’t uncommon here for people to think the Xbox could not play used games and that you couldn’t rent games out of Redbox etc or sell your old games. The gen was destroyed for MS by their own blunder combined with Sony playing it very safe and perfect in response.