There's general agreement that Sony stumbled out of the gate with the PlayStation 3.
Months of intense hype were followed by a late launch (fully a year after the Xbox 360) and a staggering $600 price tag for the deluxe model. Even worse, the PS3 didn't initially have any real must-have exclusive titles, and despite the power of its vaunted Cell processor, multiplatform games from third-party developers didn't look appreciably better than the respective titles on the Xbox 360.
Since then, the company's been modifying the PlayStation product line to better fit the competitive market landscape. As of August 2008, a new "bargain" PS3 is available with a larger, 80GB hard drive, and a "deluxe" model is due in November, doubling the capacity to 160GB.