djskribbles
Legend
The PS3 didn't have any pack-ins that they could have cut. Sony did everything in their power to reduce costs: reducing the chip sizes, reducing the USB ports, shrinking the board, removing backwards compatibility etc., etc. If Sony packed in a camera with the PS3, you can bet your ass they would have cut it if it meant they could cut the price by $100.What was Sony doing last gen? It didn't stripped down the PS3 to provide a core system. Neither did it abandon or stop supporting its non gaming features to appease some who think a console should a one dimensional product.
I don't think Sony or MS see Nintendo as a direct competitor anymore. Shuhei Yoshida even defended Nintendo saying that he doesn't think that the Wii U is a failure and that it's just different. He even admitted that he owns one and loves his Wii U.The 360 and PS3 weren't considered failures simply because the Wii was selling like gang busters. And the PS3 fortunes didn't turn around simply on a price cut.
If they want to go that route, then they need to build their first-party studios, because they're trailing the competition in that regard IMO. It will be harder to secure third-party exclusive software if they're trailing the PS4.If MS is serious about gaming its going to have to heavily invest in software. Because games are the biggest factor that influence the success of your platform.