Well then the PS3 is just as dead as the 360.
Maybe, maybe not. The biggest three titles in this genre were Singstar, Buzz and EyeToy. Two of those are here already, and the third is coming in a few months. All of them have transitioned very well to next-gen (though EyeToy could do with a bigger title aimed at casuals than Eye of Judgment, no matter how excellent that title is - one of my own big favorites at the moment).
One of the other titles that are in my list of accessible titles (even though maybe they appeal to a more hardcore crows than general), Time Crisis, unfortunately hasn't transitioned very well. But the guncon is there, and hopefully we'll get better games for it. Of course there are also non-exclusive titles that target this market, like Guitar Hero (also transitioned fairly well, though so far the use of online is limited) and DDR which I hope will do a similar thing with downloadable tracks tailored for each region. And then the sixaxis, although not well known yet, also offers a lot of similar style gameplay. It's not taking off as fast as on the Wii, because it is more limited and because it hasn't been the main focus for the platform, but steadily there are a lot of decent titles coming out using the feature, and although hardcore gamers can sometimes be a little hostile to its implementation, it does work for 'casuals', at least according to my own little focus tests.
Now there's no denying that the Wii is successfully competing for this kind of player, but that only goes to show the importance of the appeal. In the meantime, the PS3 is bringing successful upgrades of the titles that helped make the PS2 such a success in Europe, so it's at the very least not losing the appeal of the PS2, and it should certainly help at the very least against Microsoft. Note that Microsoft does put out titles like Scene It and the Vision camera, so they are aware, and are competing in this area, no doubt in part to woe the European consumer more than anything else.
A lot of people I've overheard buying a Wii typically have said stuff like that they are buying a Wii now, and will buy a PS3 about two years later, when it comes down in price (this was when it still cost 599). The only danger for the PS3 (from that perspective) is that the Wii keeps satisfying them and stops them from wanting a PS3 altogether. But I'm not convinced that will happen, though of course it does probably at least delay the PS3's pick up speed.
For Microsoft, this is the area where it will have to work hardest in Europe, I think. But they may also be satisfied by getting a specific market share, one that buys a lot of games and plays a lot of online - these may just spend a lot more than the 'casuals'.
