@Dno
The problem about your argument is MS is not about to be in 3rd place anytime soon (unless you think 2010 is soon). One big thing NPD did yesterday was to further proove that the 360 at current price point is not loosing it's lead in NA. The anemic PS3 and very anemic 360 sales in Japan is doing nothing for that left Europe and so the PS3 didnt move ahead rapidly MS dropped price and that brought sale very close to PS3 sales.
In other words the PS3 is not catching up any time soon. MS can take profits that are happening now and invest that back into the business (titles, accessories, etc.).
Its libraries that sell systems not a single game.