The PS3 fucking sucked.
Sony cucked themselves really hard with this one especially when you consider it was the successor to the best selling console of all time.
>insane launch price
>no games when it dropped
>ridiculously complex hardware configuration that made developing games from scratch a nightmare and financial suicide, forcing developers to port the 360 version which was usually a buggy mess and a massive downgrade in quality.
By the time Sony got their shit together it was clear the 360 would dominate that console generation. Literally all they had produced was a relatively cheap Blu-ray player.