IMO, the only mistake Sony made was the price. Had they released a non Blu-Ray option for PS3 at $300-$350, they would have crushed their competition. At this point, no matter what they do, it'll be impossible to catch the leader, the Wii. They do have a chance to surpass the XB360, depending how they get Japan more interested in the PS3, since the XB360 doesn't have the appeal in that region. In the US, the PS3 and XB360 will be close in sales, but Japan and others will decide who is on top between the two.
People in the industry begged Sony to rethink their $600 price tag when it was announced, but Sony wouldn't listen. Every company makes some fatal mistake that kills their control/popularity in the industry at some point. Nintendo pissed off a lot of people when the N64 was in development, which opened up the opportunity for Sony to take over. Now Sony dropped the ball and Nintendo took back over. The question is, what will Nintendo do down the road to make themselves unpopular and let MS or Sony back on top?
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