We can't really call the PS3 "Sony's downfall" yet, because Sony hasn't said a word. Obviously, that can be taken as being negative, or somehow positive. Fact is, until Sony starts talking, the PS3 doesn't exist. Like at CES, where they displayed the case but with the words "Conceptual" clearly sticking out, and a lack of controller. All reasons to believe that we really don't know what the hell Sony is doing. Now, certainly there's some major technology being hyped as being built-in to the PS3, and that they'd have to sell it at a major loss in order for it to be acceptable. But, selling at a loss is something Sony's always been doing with the PlayStation.

We don't know if Sony will have an online service. We don't know if the controller and console design are permanent. We don't know how much they are going to sell the PS3 for. All we can do is speculate. Same goes with Nintendo, although they've been more verbose than Sony has regarding their new console, so there are a few things that we know for sure (online service, "classic" game download, etc.) Far be it from me to promote Sony, but we can't go around flaming something that doesn't exist.