Question is: the wii will overtake x360 in sales this year... will the PS3 overtake MS next year? If the x360 manages to stay second in effect it "wins" for lack of a better term... MS' plan needs to be staying ahead of Sony.. not catching up to Nintendo.
For MS to "win" it needs to make the xbox 360 a profitable venture. This isn't a beauty contest or a spectator sports, its a business. If the PS3 goes on to sale 10 million consoles this generation and the 360 sell just 15 million, I doubt MS would consider that a win, since 15 million console can't support the the total cost of investment into the 360.