Disagree.
I don't think MS "underestimated" anything. It's simply that in MS's estimation, next-gen optical drive in their game console was simply not as important as ensuring that the console could launch in '05, and be ramped up in manufacturing throughout '06. (I, and I'd wager most people, would say that was the right decision for MS.)
exactly.... every time this "argument" comes up, people ignore this fact.
This head start which evidently in no way has put them behind Sony is/was imperative.
Edit:
re: "in no way"... ok, one way... game single disc size.
otherwise because of DVD and releasing in '05, they are currently ahead on:
Price (and downward price scalability)
Market share (currently )
Units in the pipeline
Software on the shelf (and on Live Arcade)
Software in the pipeline for release in '06-'07 with solid Dev support
Dev tools
Online HD content
They had their HD movie player out before the PS3's Blu Ray
these things are absolutely critical to having a chance against the Playstation juggernaut
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