Part of the problem with obsessing over overall hardware sales, is that it overlooks changing trends in which hardware is becoming the favored platform.
Ignoring spike shifts in hardware due to major releases which tend to balance back out after a period of less than a month, changes in overall averages for rates of sales over an extended period of time are more important in determining what the favored platform will be in the future.
In Japan, it looks like the PSP is becoming the portable platform favored by consumers, and not due to one or two short lived software hits.
Will it ever catch up? Highly unlikely. I'd say impossible. But if it continues to outsell on a regular basis, it makes the decision to lead develop on the platform an easier decision. It addresses the question of whether best efforts, or best volume in software is preferred.
Same may well be the case for the PS3. At the right price point and with a broad enough line up of games for the mass consumer, sales will pick up considerably. There is no doubt there. All Sony really has to do is stay in the game long enough to reduce the price of their hardware by reducing production costs, continue to push 1st party studio development and keep 3rd party developers interested in the platform.
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