I wish you guys would stop the bickering. Basically the Wii and the PS3 are in the same boat - not enough great games.
In the case of the PS3, it's biggest hindrance is the price, followed by its architecture (Blu-Ray nonwithstanding.) See http://www.hardcoreware.net/reviews/review-348-1.htm on the XB360 vs PS3.
The Wii has been outselling the XB360 (on a yearly basis) but that doesn't make it a better system. If it just a matter of numbers, the PS2 sold some 664,000 units. I wonder how many XBoxes, not XB360s, were sold in the same period?
When it comes to price I'm sure that a lot of Game Cubes were sold. My local Fry Electronics basically sold out every single GC controller and memory card they had. I had bought mine a week earlier for my Wii. Moving 50 to 100 controllers is nothing, though, since that many people could have wanted two controllers when they bought their systems.
If there's one thing that Sony could have done it would have been to make the PS3 a DVD driven system, then, like Microsoft, had made a Blue-Ray external add on. That way it could easily be replaced in two years when the unit dies. Right now you can buy a PC game on 3 - 5 CDs or 1 DVD. How hard would it have been to be able to make a PS3 game on 3 - 5 DVDs or 1 Blu-Ray? If the PS3 used dual layer DVDs, then most games would probably fit on two DVDs. When you compare the MS HD-DVD to the PS3, you'd probably be comparing a $200 unit to a $500 unit. So economically MS wins again. If PS3 cuts their prices, so will MS. MS wins again. MS has a 1 year lead in next-gen games. Winner: MS. Graphics? MS wins. (See the above article.)
What will declare a winner is the game library. MS is trying to break into Japan with Blue Dragon. But they have to keep coming out with like quality games least the Japanese buy the unit and game, beat the game, trade in the unit and game.
Make no mistake about it, Nintendo is sitting on a gold mine, but only if they can mine it. They will need game developers to make quality games for the unit. If all they make are tennis and bowling games then it'll probably fade like Pong. It is time for a paradigm shift and Nintendo has the upper hand. The games will have to follow, though. No games, dead system. The PS3 is in the same boat - developers have to recoup their costs and make a profit. If there aren't enough units sold then they can't hope to sell the necessary number of copies. Developers will then head over to the XB360. MS wins. Unless MS overcharges for their licenses, if they treat developers like crap, if they make it a hostile environment to do business.