There are so many horrible misconceptions here that I will have to address them one at a time.
sentry65 said:
sony did what's always worked for them - try to develop the better system with a certain level of quality.
This may have been within Sony's goals, but I think the development was more complicated than that. Kutaragi is a hardware geek. He likes parallel hardware and really wanted to extend the parallelism that was present in the PS2. Additionally there was a big push to make sure the entire thing was owned by Sony.
At some point in the development it was deemed that a hard drive was necessary, and then later it was decided that the PS3 would be a vehicle for Blu-ray.
Even later down the line Sony realized that MS was going to beat them to market, but Sony wasn't going to be ready for another two years at least. At this point they shelved their plans to use a 2nd (or 3rd or 4th) Cell as extra processing power in lieu of a GPU, and brokered a deal with NVidia. They pushed up their development by a year, but at the cost of having to release the system at $600 a pop.
sentry65 said:
The PS3 was in development for awhile long before it was released. They wanted and paid for a kick ass system to be developed.
They developed a system that cost a lot of money to develop. That money didn't necessarily need to go towards CPU and GPU power. For an example, the Wii had a fairly hefty budget as well, but it was directed at creating a quiet system with low power requirements.
sentry65 said:
They probably didn't know MS would rip them off and buy the chips from IBM that they paid to have developed.
The CPU that was developed for the 360 had stark similarities to parts of what was developed for the PS3. Those similarities are usually called PowerPC cores. That IBM shared ideas already used by them for Sony is
sentry65 said:
And they probably didn't know MS would jump the gun and release it a year in advance before the system was actually ready.
Ok. I'll agree on that one.
sentry65 said:
MS probably made the right move in a business sense because if they spent another 6 months developing and testing the 360 so it'd properly work right, it'd cost more money and they'd have to raise the price anyway.
Actually, it would have probably cost them less per unit. The 360's design problems were mostly with the design details and some of their parts providers delivering faulty parts - not the cost of materials. The bit exception being the inadequate heat sink - by the cost of about $5.
sentry65 said:
Then the PS3's features would have looked even better.
But the price disparity would still be there up front and center.
sentry65 said:
IMO sony did what they always have. The competition just got fierce is used a few cheap tactics is all.
I have to really disagree on this one. Microsoft used expensive tactics and Nintendo used really intelligent tactics.
sentry65 said:
I think they'll hold their own. The PS4 is already rumored to be a repackaged PS3 with more memory, cores, and stronger video processor, with motion controls. They can still recoup any lost money over the long term just like nintendo did with the wii coming from the gamecube's R&D money
Nintendo never really lost money on the Gamecube, and the rumors are rumors - some of them started by me. Whether they hold their own or not is something they'll have to take up with their stockholders.
sentry65 said:
the other thing is when exactly will the Wii drop in price?
at some point someone will see a $150 xbox 360 or a $250 (still probably $300 on amazon/ebay) and really start question why the wii costs so much more
Doesn't matter. They're still selling double what their competition is and can't meet demand. When supply meets and beats demand, they make a small adjustment (to price, colors, or packaged software) and beat everyone into a frenzy all over again.