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IMO PS3 is competitive in terms of quality of the hardware and online functionalities; to my tastes I like more the XMB and Store/Network than the Dahsboard/Marketplace/Live. The two main points agaist PS3 are 1) his price, which is based in big part in the inclusion of the Blu-Ray drive, which is not crucial to videogames -even if it allow to see fullmotion vids an hear uncxompressed audio- and 2) the lack of exclusivities, with a lot of bic franchises going to multiplatform.
Anyway, the PS3 situation in this gen is fine: He has now a few top notch exclusive titles, that will be strongly reinforced in 2009 with games like Killzone 2, and He has the most resistant format to prevent the piracy, which is a very interesting thing to the developers. But some mistakes in his tactical decisions and marketing campaigns with PS3 will destroy any chance to Sony to be competitive in the next gen with PS4. I don't care a lot about this last point because after the Diablo III launchship my interest about any other game will be close to 0, and my PC is always a step or two foward the current gen of consoles.
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