I think Sony would have botched it, really. Sony is a company that likes to be on the cutting-edge, tech wise and a great many of their fans expect nothing less than that. I'll try to paint a what-if scenario to match yours:
Sony announced the Sony Triad(an alternate name in an alternate universe), the very first mainstream system with motion sensing controls. They promise that the evolution of gaming will not only come from bleeding edge technology but also from interface technology as well. The Triad promises full-immersion, blu ray capabilities, full backwards compatibility, etc. As a demonstration, Phil Harrison takes the stage to demonstrate the Tri-mote by playing a demo of Soul Caliber IV. Fans look baffled and immediately flood internet message boards with vitriol. What is even more shocking is the price, though! $600 U.S. dollars nets you the system, one tri-mote, an analog whip(sorry, I couldn't come up with a name for that), and what is sure to be the only pack-in game of this generation: Warhawk.
With all due respect to all of the Sony fans that frequent this site(and forgive me if I'm mistaken), but had Sony released it it would still probably be met with the same amount of disgust that a great many of them have shown the Wii. Well, maybe not disgust but certainly indifference. Would it have been as successful as the Wii? Probably not. Nintendo tapped into a golden vein with the Wii series(Sports, Fit, etc.) and with that, they were able to also provide long time fans with great updates to several of their most revered franchises. Hardcore Nintendo fans have always been hardcore Nintendo fans(though they have certainly lost many over the years, but who hasn't?). I have met so many former Sony fanatics that switched over to 360 without blinking an eye. I'm not necessarily sure that Sony's fanbase is loyal enough to stand for that sort of radical shift. You're talking about a company that has released the same controller thrice, and that's how most of their fanbase probably prefer it. It's not a knock, it's just what I think to be the truth.
Sony's success in the market, with the ps1 and ps2, would have had little impact if they went in with the same arrogance they displayed when unveiling the ps3. This generation, Sony has competition on two different fronts! Sony's arrogance cost them in the same way that Nintendo's cost them back in 96.
Sony fans for two generations have been total technophiles, and would have felt betrayed, and would have gotten 360s.
Sony's biggest flaw right now is that they have lost touch with their "market cool" and couldn't sell water in a desert at this point. Even hardcore Sony fans point out how amazing it is the PSP sold any systems at all for its first two years or so, given the horrible marketing. Then, with the PS3, much of Sony's marketing has been a complete mess. Trying to entice casual gamers when they can't even sell their products to their own fans doesn't seem like a recipe for success. Instead of the "Wii would like to play" guys, we'd probably have had some Zombie Nazi eating puppies or something.
Well, if it was to be the exact size of the wii nintendo would've made, and have all that technology packed in, Sony had to have stumbled upon a new achievement. Smallest system with best graphics. But theres only one problem, since sony has so much with other media now, games would have been just as scarce as the PS3, and if there are all those bad games, there would be no purpose on the subject.
For the cheaper made Wii, aka, a PS2+ version they'd have totally dominated the market even more so than Nintendo currently does. Heck, the PS2 still sells like crazy.
As a Blu-ray playing console with the new controller then the system turns into this generation's Dreamcast with lots of great games with something unique about them. The barrier to entry to the BD cost will cut down the shovelware.
But I suppose Sony could have had success releasing a Wii-type system, as long as they made a game that was as fun and accessible as Wii Sports.
Well, if it was to be the exact size of the wii nintendo would've made, and have all that technology packed in, Sony had to have stumbled upon a new achievement. Smallest system with best graphics. But theres only one problem, since sony has so much with other media now, games would have been just as scarce as the PS3, and if there are all those bad games, there would be no purpose on the subject.[/QUOTE]