The industry is led by the weakest platform, technologically, and Sony forgot about that with the PS3. The status quo always dictated that developers design their games around the lesser platform so that the games could be equal between all platforms (except the Wii, but that's another thing entirely). In the end, Sony's insistence on powerful but expensive proprietary architecture turned out to be a waste.
One bit of praise I'll give to Sony is that they seem to want to keep the PS3 alive for a while longer even after attention shifts to the next Playstation, as was the case with the PS1 and PS2. New, exclusive, and unique properties are still in development for PS3. I can't say the same for the 360.
It's exciting, the future of Sony and Microsoft (worrisome on the other hand for Nintendo). This is the inflection point, I think. I've been keeping up with news for the next-gen hardware, and I really feel that Sony is hungry again, after being on the losing end for the better part of 6 years. They are going to give Microsoft a real fight this time, and with rumors and hubbub about unpopular paths Microsoft will be going down with their next system, it's going to be interesting at the very least to see how this all will turn out.
