Since the release of the Slim, the PS3 has done well as it is now in a practical configuration and price point.
But it is looking likely that it will never realised the superiority over the 360 that the Sony execs claimed (and comments form designers pretty much demonstrate this is because it it too awkward to do with not enough reward), and if only Microsoft could break fully into Japan, Sony would have had a bigger problem. That and that Microsoft seem to be able to release 360s at a cheap price. It was the launch that put Sony in last place- overpriced, underfeatured and simply nothing in there to attract people. Lucky Sony had a massive fanbase.
As it is, PS3 sales are gaining- looks like Microsoft are betting on Natal keeping the 360 in second place for its lifespan. We'll see.
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Actually, just an addition to that- an interesting phenonenon we can observe here is the importance of cross-party titles, outside of Nintendo who are... just Nintendo.
Say the PS3 WAS easy to maximise and could show demonstrable superiority over 360 titles. I still don't think it would happen. Why? Because people want to sell on both consoles, mand what benefit is there in doing a better PS3 one and then downgrading it for 360? It's more effort, it is doubtful it would get you more PS3 sales, and it will likely alienate 360 buyers.
Instead, if you make it at 360 level and market it on both as pretty much the same game, you likely maximise your sales.
So the draw is no longer to the most powerful machine- the importance of cross-platform sales now means that it is the average you are aiming for.
So the extra theoretical power of the PS3 isn't worth much, because that margin is a small market. If Sony could have held onto all its exclusives it might have worked, but those days are gone- only Nintendo, who can do so much in-house, really still have that.
Still, I remain surprised that Microsoft want the 360 to last until 2015. By then it is POSSIBLE that the PS3 might finally get its edge... if a little late.