As everyone (mostly) has responded to this thread, I have to state they've all made the correct points. Thread bombed.

Damn you honor your name Noobie.

DMC will sell better on PS3 over long term GTA 4 will become the biggest thing on the PS3 also... why you might ask. It's simple PS2 GTA outsold the XB GTA with more than 7:1 ratio yet the hw sales is less than 5:1 it's simple math.

oh yeah to jcp234
Microsoft xbox division is making losses and IS in debt. We talk about the division here not the entire company the same goes for Sony. Without the backup of other divisions from them you would have never seen something like the PS3 neither for the xbox 360. Atleast not for prices below 700 dollar.

Stating Microsoft is a software company has nothing to do with the fact of the high failure rate of the xbox 360. The problem with the 360 lies with the fact that microsoft just rushed the entire process of it to be sure that they would be the first one to launch the current generation. Why the whole defense point of MS is a software company is ridiculous is simple... the Xbox didn't had a high failure rate.

Europe and USA sales only.

Burnout Paradise PS3.
eu - 72k in 1 week.
us - 30k in 1 week.
Total - 102k.

Burnout Paradise x360.
eu - 61k in 1 week.
us - 67k in 1 week.
Total - 128k.

Difference - 26k or 11% from total sales.

Devil May Cry 4 PS3.
eu - 86k in 1 week.
us - 169k in 1 week.
Total - 255k.

Devil May Cry 4 x360.
eu - 91k in 1 week.
us - 266k in 1 week.
Total - 357k.

Difference - 102k or 16% from total sales.

Burnout Paradise PS3.
eu - 186k in 3 weeks.
us - 86k in 3 weeks.
Total - 272k.

Burnout Paradise x360.
eu - 142k in 3 weeks.
us - 163k in 3 weeks.
Total - 305k.

Difference - 33k or 6% from total sales.

 I agree with you completely, I just feel MS might have realized that they so far have met nothing but failure on the "console" front, I truely feel they might be going software only next time around. I also like to think of it like this, didn't the Playstation 2 only make Sony something like 1.8 billion dollars total to date so far? I mean that's a pretty menial drop in the bucket as far as profits are concerned to Microsoft. I would just think that they'd prefer to tackle they're specialty instead of essentially failing twice at carving a "hardware" legacy. 

I do agree that they probably have some much bigger master plan in mind, but right now I just don't see it, I mean at least the negative losses on the PS3 can be contributed to establishing Blu-ray as the new medium,  all I can really see on the 360 is xbox live, but with growing establishments like Steam and PSN it just seems like an uphill battle :x

 I am a big fan of Microsoft, so I may have a more optimistic perspective on the matter.

With that said, I can still be objective and express my disappointment with some of their products/services:

1) Windows Vista (terribly inefficient and just a step backwards in innovative software)

2) X-box 360's lack of an internet browser (just unacceptable)

3) RROD

4) I would have liked the implementation of the HD-DVD in the 360's hardware (though I know it would have bumped up the price of the 360)

5) I think all 360s should have an HDD of at least 80gb capacity

6)  Internet Explorer just seems more and more bloated. I have been quite impressed with Mozilla's recent Firefox 3 beta efforts.

But currently, software is selling really well on the 360 and its online services have a loyal following, so I am confident/hopeful that Microsoft will gain more ground and acceptance in future generations.

And I would not say the X-box division has failed or is failing. Microsoft's 360 is performing signifcantly better than the first X-box. Sure, it still has many hurdles, but like I said...Microsoft is software first and this is only their second generation in the hardware game. Give them time.

I'm not a very big fan of Microsoft, but I don't hate their 360, it does many things right. I'm just trying to figure out what they would want with "consoles", they have software down pat, great with advertising, great marketing, awesome commercials :P, they just seem to have problems working around the hardware it'self, which probably stems from them not really having any personal hardware lines.

Sony makes many of the components that go into the PS3, so I understand where they could benefit from making hardware. But MS only really does software to my knowledge, and they are indeed damn good at that xD I just can't quite see what would push them to make another unit, and not just push software.

I will not bother to put too much effort into this response because you're obviously ill-informed on the matter or merely uneducated on it. Talk to any business academician and they will tell you that no division of Microsoft is in debt. I would suggest you take a few introductory accounting and finance course before attempting to challenge what I claim. 

2004  -   http://money.cnn.com/2004/07/20/technology/microsoft/index.htm

2008 - http://blogs.cnet.com/8301-13505_1-9865565-16.htm

Please do me a favor and access both of those aforementioned news articles pertaining to Microsoft. While on the page...do a search for the word "debt" and then enlighten yourself.

 These two articles, from very credible news sources, state as clear as day that Microsoft HAS NO DEBT! 

One article is from 04 and one is from 08.

I challenge any skeptics to find a reliable source stating that Microsoft is in debt.

The fact that a poster would boldly communicate something so ill-informed is laughable.

so nobody agrees with me.. not even any XBOX or Wii fan..

 Sony was home of the console of choice for two consecutive generations. I can't see them stepping down because of one generation of unfortunate events.

I honestly have a preference for Microsoft and Nintendo systems/franchises; however, I like the competition and advantages that three competitors afford me, the consumer.

I do intend to eventually get a Playstation 3 when the price comes down, and I want Sony to be around in future generations.