I actually agree with this. Sony had name recognition; EVERYONE knew the PS2. And just about everybody had one too. Sony had the upper hand in that regard; the launch of a PS3 would always be much more impressive than the next Xbox, which although the original Xbox was a good system, was nowhere near as popular as the monster that was the PS2.
If Sony had followed Microsoft's plan instead of the one they did follow, they definately wouldn't have had the time to install Blu-Ray on the PS3, which may or many not have hurt/helped it. What's for sure, though, is that the PS3 would've sold very well initially, because it wouldn't have cost $600. Without a Blu-Ray drive (and believe me, if the PS3 had launched as early as the 360, it COULDN'T have had the Blu-Ray) it would be cheaper by at least $150, which was a reasonable amount. That, combined with the name recognition the Playstation brand already enjoyed, would've meant the console would have sold very well.
Part of the 360's problem is that it was developed by Microsoft, which lest we all forget is a software company who really didn't have all that much experience with hardware. Their only big achievement in that field was the original Xbox, which wasn't all that impressive, hardware-wise. Sony, on the other hand, have been making TVs and laptops forever, and so they KNOW their hardware, not to mention they've released a PSOne and a PS2. I don't think that if they released the PS3 early, without Blu-Ray, it would've neccessarily have been a hardware-failure-filled disaster. True, the PS2 had its problems, but nowhere near to the degree that the 360 has with its RROD.
Now, all those factors combined would've meant that this fantasy PS3 would've sold VERY well in its first year. After that, when they realize that it's so hard to program for, and games like Gears of War start coming out for the 360, the sales may start to flag significantly.
Oh and, I doubt ANYTHING Sony could've done would've allowed them to beat the Wii. That thing just prints money.
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