PS3 was more expensive, but also had extra features for that expense, like bluray for one. Wifi I think was another. Free Psn. Etc. At the time of release, if they were features you wanted, it was actually cheaper to buy a PS3, compared to a 360 with the equivalent addons. 360 also affectively held back the growth of games by using DVDs, as multiplatform games were inevitably made for dvd. I don't think it was completely Sony thinking people will pay more for the name, it was a better media system out of the box too.