Interesting article. It's strange that it questions MS for going so "high end" with the 360, when the PS3 is more of a "Cadillac" in a lot of ways. I also didn't find he adequately justified his rationale for focusing only on the Japanese market.
He also avoided what I feel is one key difference between MS and Sony the game market. MS relies almost solely on the licensing fees to recoup losses from selling consoles below cost. Since Sony has it's own game software (and movies for Blu Ray), I think it's in a better position to recover these costs. They are able to count the full sale of the game toward revenue, rather than just a small portion (licensing fee). If MS is losing more money from it's XBOX venture than Sony is from the PS venture, I feel that would be the main reason. A game console is more closely tied to Sony's core business and it's other established arms. MS is a software company trying to market a hardware product that they don't make most of the sellable software for.
We'll see what happens in the future, but it was a good article to read. Just a strange perspective with some interesting choices for supporting his arguments.