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PS3 - Sony offered way too many games at launch, thus intimidating their prospective customers into buying other systems. I'd have narrowed it down to just one launch title (it worked out nicely for the Wii).
360 - I'm not sure what the RROD rate was for the first batches, but I've heard something like 60%. I suspect it might have been even higher, but it's still unacceptable. I think they could have easily gotten it to 90+% with a little effort.
Wii - I would have ditched the motion controls, added HD graphics, and focused on hardcore games. Maybe then it wouldn't have such dismal sales numbers.