All points about games can be integrated into "- Poor development tools initially, relative to MS".
I disagree.
It isn't just an issue of development tools but their choice of hardware design, a focus on the PS2 well into 2005 (and even beyond), a delay/price that put them at an install base disadvantage that lead to them loosing their grip on "lead SKU/base platform" status as well as giving their competition a software library lead and budget library advantage, adn so forth.
Many of their moves (price, delay, design, software dev focus, etc) are interconnected/related with the end results. We can either list the issues or the end results, but summerizing the results as all related to one issue ignores how Sony has quite a few issues that shared in breeding a number of net results.
Oh and I don't see what's wrong with "Introduction of no less than FOUR sku's in the first year". Are you against cost reduction?
You don't need to add new SKUs to cost reduce.
Just like... HD Era
Yeah, the talk of dual HDMI, 1080p, and 120Hz doesn't reflect well when you allow games on your platform with sub-30Hz framerates and less-than-720p resolution.
Deflecting the issue doesn't really address the fact Sony has found themselves in a hole. All 3 have made mistakes, so the real issue is how has Sony found themselves in a deeper hole relative to their competitors.
Even if Bioshock's Steam sales are 5 times higher, it still doesn't make the PC gaming business look good. And what about WIC, MOH and the rest? Epic, Valve and Id turning to consoles should be another indicator of the trouble. I expect Blizzard's next game to come for the X360 and PS3 as well, just as Crysis. Consoles have matured to a point where the overall gaming experience beats the PC in most genres, and it shows.
With something like 9M users I don't think WoW2 will jump off the PC anytime soon. It is a money machine, and it was designed to work on older hardware. If in 2009 Blizzard does WoW2 they could probably get away with DX9 SM2.0 and have millions of users available on the PC.
And to be frank, I think WoW is a major reason for PC sales being the way they are. That and piracy (was reading a nice little article recently that demonstrated, at least in the territory in question, that piracy had a direct impact on sales).