Lodder, you're right, it's not a disaster.
But PS3 started the Playstation brand decline.
Playstation 2 destroyed the competition, Sony had a 130 million userbase. Sony was the market leader. A giant.
Now, 4 years into this generation (3 years for the PS3), Sony is in 3rd and last place, and many PS2 users went for the 360.
The PS3 is not crushing the competition, and will likely finish 3rd at the end of this gen.
BUT it's not a disaster, because the PS3 has really good games and people who bought it are happy (I'm one of them).
Just like the Dreamcast in the old days.