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Actually the PS3 is only outselling the 360 in Japan, out of the 3 groups VGChartz divides the world into. You probably meant "has sold more so far." Right?

They didn't "let" this happen, the economy, Microsoft, and the general population's desires completely swept Sony away before they could react to it all. The real problem is the business strategy Sony came in with in this generation of consoles; they didn't understand what made a console worth a purchase in the general population's mindset.