The problem with PS3 is, that first its a convergence box, convergence only works when you have a product that does one main thing far better than its competitors and then on top of that has bells and whistles, PS3 doesn't have very strong horizontal or vertical differntiation. Its more powerful than the Wii and possibly the 360, but the 360 comes close enough to have the same games at similar levels of quality, Wii has gaming that the PS3 does not, so the PS3 isn't able to really show why people should get it as a game machine over the 360 and/or Wii. In addition its trying to converge features which are not the industry standard, Blu-Ray is still far from overtaking DVD's and may never become dominant.
Since 360 and PS3 occupy a very similar market, proce between the two becomes very important, and 360 is easily winning that war.
The Wii has enough differentiation, that the price of the 360 and PS3 don't really affect it, plus its popularity breeds more popularity, more people try it at a friend's house and buy it for themselves.
Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!! It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!! Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)
