Is this game over for Sony?

[ranzchic]

Then why has Gears of War outsold Wii Sports, despite 1.1m copies being giveaways?

Because there were only 1.1 million Wiis produced/shipped/available to buy?

N64 outsold the Playstation in the early days

When the N64 was released in Japan, there was the expected selling out for a few months/weeks but everything went back to normal after 2 months and the PS at that point is outselling the N64 at least 2-1 with an installed based almost three times larger. The Playstation was released almost 1.5 years before the N64 in this market. In North America, the N65 almost caught up to the installed based of the PS but it was still 1 million behind by Oct 97(PS- 5.4M vs N64 4.4M). After that holiday season, the Playstation never looked back and further increased the install base lead. The N64 was released here a year after the PS. In both cases, the PS clearly had the momentum and never did the N64 surpassed the installed base of the PS. There were times when the N64 outsold the PS on a particular month/week but it was mostly due to the new-ness of the product. Nintendo being dominant for so long might also have something to do with it.