For a slam-dunk console victory I agree wholeheartedly. Another PlayStation, fancy graphics and a mainstream price, launched with PES and Madden exclusives, and..GTA or whatever. In the bag. End of story.
Question is, was that at all a realistic scenario? Would EA have gone for this? I doubt it. And even if Xbox1 and Gamecube didn't win the previous generation, they were presences, and they were enough to be supported. In the end, most games were available on all three, and the PS2 often had the weakest version.
Some people seem to think that if the PS3 simply consisted of any basic current processor (preferably an OOO Intel one or a G5) and a G71 with a DVD drive, in short, a very old-fashioned PC, and brought that to the market at a price equal to or below the 360, they would have won by default. Is that really so?
No. In this industry, you can only for a short while live on your name alone before a competitor takes your leadership position. We all know the examples, so I'm not going to list them.
So the next alternative would be to compete primarily on the software level. Sony creates the best developer tools, some really great first party games, and spends some big cash on some hot exclusives. Could they have pulled this off? They'd have been a lot more vulnerable to the Wii, to begin with, and it is questionable that they could have competed with Nintendo's game design or Microsoft's experience with creating SDKs, unified software platforms, Windows support through Games for Windows and Live, and so on. Let's not forget that the Xbox in its final years was already making some decent inroads, especially in the U.S.
My take? No way they could have pulled this off, and it would have meant an end to one of the original Playstation's main source of success, which is that they both were forward looking platforms with a solid hardware basis that left software a lot of room to grow and do new things. Sony's first party stuff hasn't been the primary driver for its platforms. Instead, it's creating a viable and lasting hardware foundation and then funding the right software projects to make the most out of it.
So their final alternative was to continue the logical path of the previous two generations. This is what they have done, and this is partly what competitors either expected or feared they would do and assumed they could not compete with. The Playstation series has been a series of consoles recognising that games demand hardware that is so highly specced, that increasingly the console that supplies this hardware is also capable of other multi-media functions. They basically come for free after the requirements for the console have been met. While both Microsoft and Nintendo chose differents paths, to make the most of their own strengths, even they recognise this, but neither of them can and will make as much of these features as the Playstation can.
Microsoft and Nintendo both have been successful so far, but the main strength of the Playstation platform, building a durable and fertile platform for both first and third parties to grow and blossom on, still has to pan out. Sony has been by far the most forward looking of the three, and that almost by definition means that its strength will become apparent more as time progresses. It has been unlucky with a few things (diode, rumble), and simply mistaken in others (especially online SDK could and should have received more attention earlier on, and I fully blame this on Sony Japan - SCEE and SCEA have worked hard to change this, and eventually the importance of this was recognised and Phil was set to work), but that wouldn't have been a big problem if Sony didn't have competitors who focussed primarily on trying to get an early win.
If you look at Sony today, then you see a company that has set a firm hardware basis, and has reached the 399 pricepoint required for serious competition, and has nearly finished ironing out the last chinks (rumble is nearly out there). I'd say the Playstation hardware, with probably only sacrificing BC in the 40GB version excepted, reached an important milestone with a surprising number of hardware features intact (BluRay, Wifi, 40GB HDD, soon both motion controls and rumble, HDMI 1.3, 1Gbit Network port, it's all still there), and from now on it is all about the software.
The 360 has received its early boost, but from now on the playground will level out, and the battle is on full scale in the software realm, with the Wii and the RROD issues helping to hold it back from becoming the huge success at retail it could have been in the last 12 months. Firmware 2 is coming soon, and the public beta for Home will no doubt follow closely on its heels, as I'm sure the two are closely intertwined, which should offer the PSN platform an SDK that sufficiently rivals and in some ways exceeds Live. Where the 360 has almost all its aces on the table, Sony is only barely starting to get its big hitters out there, with Eyetoy/EyeCreate/Eye of Judgment and Singstar (with EyeToy support and online features, and iTunes like music platform and never before released in the U.S.) catering to a wider audience, Gran Turismo looking as sharp as ever (and with Top Gear!), and showing that it still has a good nose for talent, snapping up promising and original new ips both for bigger titles and for PSN downloadables, (from Echochrome to WipeOut with online play and sixaxis support), Little Big Planet and many other wonderfully original things. Unreal Tournament will be significant not only in proving that Sony not only offers a more open network experience, but that the Unreal Engine itself is now running very well on the PS3 which is important for a number of multi-platform games. Also this year should be the last year in which PS3 versions of EA games are the lesser versions, and we have already started seeing PS3 versions of multiplatform games that look and/or play better, among which Burnout 5 being an interesting one for also having a more immersive online experience on the PS3 than on the 360. And maybe something overlooked, but whereas in the last generation some PC games were only ported to the Xbox because it had more memory, this generation there's no such difference and only the initial learning curve has been holding the PS3 back so far (but won't be in the future).
You won't hear me claim that the PS3 is the winner by default, but everyone who thinks that Sony is losing is rushing into a judgment that is not yet based on what the large audience is buying this gen, but mostly on early adapters and enthusiasts, many of whom were early HD adopters, will own both consoles, who were loyal to the original Xbox and Halo 2 fans (or fans of Live in general) and either had to stop buying games or upgrade, and so on. So far, happy Playstation 2 owners have had the least urgency to upgrade to the next thing, but that does not mean they will suddenly choose to upgrade to a 360. That the 360 is poised to take a stronger market share in the US is, as far as I am concerned, a given. But the overall battle will be hard fought by all parties, and the longer it lasts, the more likely the overall win will go to Sony.
There's a lot more to say, obviously, and I'm having trouble finishing this post as tonnes of thoughts keep making me want to add things (on all sides of the scale) and yet that only goes to underline the complexity of the matter and how unlikely it is that anyone right now can reliably predict the future. But if things pan out as they are looking to, then I expect the Playstation to go a long way.