That's where I think we'll just end up having to agree to disagree as it's almost impossible now to pull up relevant figures for the Jaguar, 3DO, Dreamcast, Saturn, and a few other contenders to Sony/Nintendo.
I still think it's quite likely that the Xbox brand would have followed in the step of the Dreamcast had it not been for MS's willingness to suffer incredible losses in order to give it a viable chance in the next round.
I don't think that PS3 is currently in that dire shape. As I've said before they are only really at a relatively large disadvantage in the US. In other territories it's currently alot closer, although MS is pushing hard to gain ground in Europe without much of a response from Sony. And Sony doesn't appear to be doing much to change the situation in the US. At least not yet...
However, all that said. It is my opinion that it is having an impact or will have an impact on games being made for current consoles as well as how developement money is being allocated. And if (really BIG IF) numbers continue to slide for PS3 then things could potentially get ugly. IE - it could become the Xbox of this generation.
However, there's still some extremely compelling exclusives coming down the pipe, so I don't think it'll get that bad. God of War III "should" move some consoles and will probably have a larger impact on PS3 sales than MGS4 did.
Regards,
SB
We agree to disagree then
To make two quick points, I think the Xbox is an entirely different boat.
In one hand, it came to the market extremely late with no brand recognition, and had to establish it's "name" from scratch, so it's not really a good example to use as a comparison to any other console. In fact, I'd say that the PS3 / 360 / Wii situation is completely unique.
Also, I don't really understand what it is you mean when you say it could become the next "xbox" of this generation. It seems you are implying some sort of negative connotation, however, I don't see it. The Xbox had a lot of superior ports, and some really really good exclusive titles. Hell, I wouldn't have played any Half Life at all if it weren't for the Xbox. I just don't get the direct connection between it and the PS3, other than both consoles were in 3rd place and still had a fantastic software line up.