"In marketing language, a gimmick is a quirky feature that distinguishes a product or service without adding any obvious function or value. Thus, a gimmick sells solely on the basis of distinctiveness and may not appeal to the more savvy or shrewd customer."

AHEM

I had to lol a little at teh Cell "revolutionizing gaming". But I think people have mostly covered it, they relied a bit too much on brand recognition and they did want to trojan horse Blu-Ray into the living room, which is a viable business strategy BTW and no reason to get down on Sony for that. I was going to buy the next Sony machine regardless of the situation eventually though, so it really didn't matter to me how much it originally cost.

It is just the same old Sony cycle they have been running on for decades. They start with a product that outdoes the compotition, and price it lower than the compotition. Then over the years they build up to the point were they think they have smart consumers, who are aware of the tech world. Then they launch a product that is years beyond the compotition and at a 40 - 50% higher price. Now they expect all of the masses that own their previous products will take an objective look at their new product.

Sadly, everytime Sony has reached the point were they could lead us to a beautiful future of electronic bliss, the whole structure falls apart and they have to start all over. So what it comes down to is. Sony is trying to help everyone out, but consumers are stupid and love to *($% themselves over.

Because people aren't informed and don't want to pay $599 for a console, no matter what it does.

Wrong, clearly.

Sony took a risk and saw the outcome, thats how the industry works, risks.

that's the million doller question, spot on.

They greatly overestimated the power of their brand...and many of those "smart" execs in all those huge companies always fall into that trap sooner or later...no matter how powerful your brand is, never overestimate it and lose touch with what made it so successful in the first place...shouldn´t be a hard thing at all.

If MS hadn´t fucked up with the RROD problem, I think the 360 lead would´ve been far better..oh well, at least they both have learned not to release such a shitty hardware and not to price a system for $500/$600.

@OP
you asked and answered your own question.

Also, Sony typically tries to be at or close to the cutting edge of technology with all of their new products. It is what makes Sony the unique brand that it is.

Sony was following the path that appeared to make the most sense from a hardcore gamer perspective. On paper, what tech-head doesn't want all of PS3's features? In practice, it came at too high of a price.

The second problem with this was that the non-tech-heads don't care. A couple of years ago if you were to bring up Blu-ray in a room full of women and older men, they all would have said, "What's a Blu-ray?" Even today they may know what Blu-ray is but they still don't really care about it. These people have helped to make Wii #1.