So stupid I had to make a blog entry about it. in Off Topic
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"We don't provide the 'easy to program for' console that [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so then the question is what do you do for the rest of the nine-and-a-half years?"
- Sony Computer Entertainment boss Kaz Hirai.
I think this sums up what went wrong with the PS3. "We can't beat the Wii outright, but if we ran the PS3 into the ground we would be able to make more progress than the Wii simply by not having loan sharks blow our toes off at the end of the generation".
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