CouchMonkey: I don't know if its fair to say Nintendo should have been ready to launch the Revolution anytime in '06. If you say that the arguement should hold even more true for Sony who has been in the market longer.
The truth is Microsoft blindsided Nintendo and Sony by releasing their next generation system in '05 and knocking a complete year off the life cycle of all the systems. Really this generation could have easily gone another 2 years without the world blinking or batting an eye, but MS really wanted to be first in the market and get a jump for marketshare.
Now Sony and Nintendo are both trying to figure out what to do. Do you push the product deadlines ahead of schedule risking rushed software and less 3rd party support, or do you hold off as planned and keep your pace and let the chips fall where they may.
I think Sony management tried to push the time table up for launch and realised that they just can't do it. Games aren't ready, production of hardware isn't ready, and in fact hardware design in and of itself isn't finalized. But worse, they were planning on the later launch to help bring the price down SOME, and now they are stuck in a rock and a hard place. I think their delay isn't a delay but a forced resignation back to their original time schedule.
Nintendo is a mystery. We know nothing about the hardware, the software, or the original time table for launch. Except that Nintendo promised it would not be late this time. (That Nintendo would launch close to or at the same time as Sony.) Is Nintendo trying to push the launch ahead of schedule so they are only behind the competition by a few months? Does that mean the competition is now Sony or Microsoft or both? Perhaps that confession means Nintendo is having to delay to get games shaped up and hardware and online infrastructures up and running? Only time will tell on that answer.
But one thing is sure both Nintendo and Sony are both caught in a situation they don't want to be in. Microsoft has brought this current generation of systems to an end.
I don't think that means Microsoft is in the best situation though, because their system doesn't look or feel at all like Next Generation hardware and their controller and everything about the system screams been there done that.