Further to my PS1 for #1 argument, it also showed us that games could be for teenagers and adults, not just kids. It also showed us that gaming is about GAMES, not hardware. This is why the PS1 beat the N64, even though the 64 was a superior machine. The PS2 beat the original Xbox, even though it was a superior machine, and now, the 360 is beating the PS3, even though the PS3 is the superior machine, simply because the games are better, and the community is better.
I find it odd that Sony, above everyone else would forget that it's all about the games.... Sony's major problem now is that they invented Blu-Ray, and felt obligated to throw it in to the PS3, efffectively spreading themselves out too thin. The developers now feel obligated to use the Blu-Ray technology and the extra space, as well as take advantage of the processor, so any PS3 exclusive title takes way longer to make and costs more money. This is what is scaring development houses away from making games for PS3.
Cross-party games don't use the Blu-Ray format... so if you're playing Call of Duty it's the same thing on both systems. Most PS3 games don't even come on Blu-Ray discs. Sony has effectively shot themselves in the foot by alienating the very people who made them what they are today.... the developers...