@ kamekazai
In regards to profits, I was refering to per console sales not over divisions. Last I heard Sony was losing money per system and microsoft just started making money per system.
Personally I always consider the costs when speaking about profits.
Was it worth it to through that advantage out just so you could push you propiertary format?
I believe you are mistaken. The PS3 product as a whole just wasn't done yet. Mature dev kits weren't even available to developers since a few months before release. Surely that's not Blu-Ray related! Would you have wanted the PS3 to ship to consumers before the developers had access to a mature enough development platform?
I am glad my PS3 includes a Blu-Ray drive though.
And I don't think the one year headstart for the XBox 360 really will mean much for the long run, this mostly offers PR advantages, which may have some little effect in the US but globally speaking I don't think this will matter much.
Last year the PS2 greatly outsold the XBox 360 and this year the Nintendo Wii, maybe next year by the PS3. All in all the XBox 360 only really does great in the US and UK, but even in the US there are 5 times as many people playing on a PS2 than on a XBox 360 (June 2007 survey, NPD).
The other problem with the "long-term design" is that it only works if in the long term nothing better come out. What happens if 4 years from now as the ps3 picks up steam, then blam a new system drops which at that time would have significantly more powerful hardware.
Simple, the PS3 will have a larger established games library and most likely cheaper costs. A game project on the scale of God of War takes at least 3 years to complete, so the new console won't have this advantage.
Sony has been touting the system as a 10 year system, which as the playstation 2 shows is possible, the problem was power wasn't what made it possible which is all sony appears to care about with ths design.
Playing God of War 2 (on my PS3 of course), I can say the PS2 was one heck of a powerful platform for its price at the time. This old beast can be pushed to extremes by talented coders.
In regards to game lineups I think both systems are diverse, both have shooters, racers, rpgs, etc.
Yes, the XBox 360 offers more game diversity than was the case with regard to the original XBox. But still Sony's partners seem to be working on far more game gernes. Everything from Singstar to Ratchet, from Super Stardust to Eye of Judgement, from Killzone 2 to LittleBigPlanet, etc, etc.