The Cell sucked and was pretty much what fucked the PS3. Had Sony just gone with some basic design like the 360 the PS3 would've sold about as much as the PS4. Sony was never able to match prices with the 360, a few years into the gen and you had a $199 360 and even by the end of the gen the PS3 never reached those prices.
It was the perfect storm for MS and all they managed was to end up in last place and completely nuke their internal studios out of existence. Absolutely no vision.
The Kinect ended up fucking MS later on but during the 360 gen it actually considerably boosted their sales.
Miss me with the arrogant Sony talk, MS has been arrogant for decades and hasn't done shit. Sony fucked up with the PS3 hardware and that's about it, they turned things around within 3 years and set up what would become more than a decade of complete dominance. It's not like Sony planed for the PS3 to not justify it's price, the expectation was to release a premium console that would perform that way.