When PS3 was launched also in Europe, XB360 had accumulated a 7+ million lead. PS3 had only 1 Xmas in its main market during its first two years, while XB360 had two Xmas WW. So while it's far from PS2 and Wii performances, PS3 fared quite well in its first two years, especially considering all the unfavourable events (whose most are undeniably Sony's fault), like scattered launch, loss of exclusives, blue laser shortages at launch, high price, BC only on some models not available everywhere, etc.
That said, unless LBP and other big releases manage to reduce the gap by more than 2 million units this Xmas, PS3 will need a price cut at the beginning of next Spring if Sony wants it to catch XB360 WW by the end of Q2 2009.
As for Wii, neither PS3 nor XB360 have any chance to reduce the gap before their strongest rival starts approaching its market's saturation, and that moment is still very far (almost surely they'll manage to do it only keeping on selling after Wii stops).
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