I dunno, I think Sony's biggest mistake was control of costs this generation. It translated into that high initial price point of the console (while still being sold at a huge loss), much lower than expected sales and, as a result, faltered 3rd party support (loss of exclusivity or loss of titles all together).
I personally find the PS3 controller to be the most comfortable controller to date. Which, to me, is important because all home consoles, in a general sense, are the same besides graphical power, load times, exclusive games, and controller devices (the big 4 differentiating factors for home consoles).
All in all though, Sony has done a remarkable job of turning around their nose dive start into this generation. Though going forward, into next gen, looks to be very perilous on the cost side of things. Offering something unique (exclusives, controllers) is going to be much more important than offering marginally improved graphics.
Which is why I am excited for the PSP2, It is going to be the first portable device with dual analog sticks, dual touch surfaces, and looks to be an overall polished piece of hardware with a lot of 3rd party support.
For the 8th gen, I am a little uncertain about Nintendo at this point. The have done a great job up until recently with faltered 3rd party support on the Wii, and lack luster launch of the 3DS. They have made some questionable choices on the 3DS's design, from not including a second touch screen instead of a 3D screen (choosing visuals over gameplay), to not including a second analog slider after having plenty of time to learn from the MANY PSP complaints, to not launching with a must have title (Mario, Link, anything good? please? why not?). Lets just hope they do something compelling with "Project Cafe".
Microsoft, on the other hand, hasn't done much to impress me as a consumer; they always seems to do a so-so job their products, except windows 7 (that is an exceptionally good product).
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