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if the GC had (a real) Final fantasy and MGS, Gran turismo (or indeed ANY serious racing game), GTA, and the possibility of being the next gen movie player of choice, it would have done far far better. Its biggest guns were rare's support, which it lost, mario, which was a HUGE disapointment and Zelda, which many people (idiots) were put off by its cell shaded nature. There was also NO momentum from the previous gen, people wernt that interested in another Nintnedo machine in the first place.

Nintendo were unlucky and unprepared.
Sony are just being stupid (or maybe over ambitious/reliant with its fanbase), but they're learning, slowly.