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Arrogance... I think that's what hit most people. "You should get a second job." "The PS3 is cheap." "5 Million people would buy the PS3 even if it didn't have any games." and my favorite, "The next gen doesn't start until we say it does."

(I'm just paraphrasing...sorry if I got the quotes wrong)

I also think it rubbed a lot of Nintendo/Wii fans the wrong way when they announced that the dual shock would have motion controls.