Sony is still in control, but I have to disagree...they've made a few mistakes. Now, they may not pay for those mistakes (at least maybe not much), but let's see...mistakes for the PS3:
1) Angered third-party developers with the dual price points that seem rather high as well...something Sony criticized Microsoft for as well.
2) Dropped plans for a gradual release of the product starting with Japan due to a miscalculation in parts manufacturing. Now Sony has to deal with the headache of a simulataneous global release that will cause massive shortages...something Microsoft was criticized for as well.
3) Has so far made a lot of promises about a free online service that will rival Xbox Live, but has shown nothing about it so far...this becomes more egregious since all of the promises that were made for a robust online service on the PS2.
4) Whether or not people desperately want a PS3, the pricing will preclude the vast majority of people from becoming early adopters while slowing the rate of installation by far. Positioning itself as a luxury device like an Alienware PC or a Lexus isn't a way to grow market share. A nice piece on the subject from Gamasutra:
"At 600 euro, the PS3 would be more than 35% of the monthly household income of a family in Valencia (ed. -- Spain's third largest city with a devoted following to Sony products). Combined with the 2000 euro for an HDTV that could take advantage of Blu-Ray and four games, the total cost could top 15% of a family yearly income. On a per person basis, that would be almost 40% of an adult Valencian's average income. Consumers in much of Europe (and North America as well) simply aren't ready for that type of expenditure and success for Sony will require that 1) they can keep the PlayStation 2 business alive and slow consumer adoption of new systems and 2) they can make the price more affordable."
As for the good ol' US of A, due to record high energy prices, a slowing housing market and stagnant growth of real wages, most of us here would have to do some hard thinking to justify a purchase that is about 90% of my own monthly rent here in the somewhat more expensive Northeast region of the country.