Why? Well, essentially, Sony wanted to compete with Microsoft. Video Games are big business, and Sony wanted to make money on selling the consoles.
Spec wise, the Ps3 has six cpu cores, which is very powerful. It also has a very good video card, but little Video RAM.
The Xbox 360, meanwhile, has advantages in other areas, but can't play blue-ray disks , and it doesn't have six cores. (I believe it has 2, but I may be wrong.)
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