@ smashchu
The article you posted mostly proves me right. Their source says that a defensive strategy was "partly" the reason. Then he goes on further to explain how much MS could profit with the X-Box brand if they were to defeat and drive Sony out of the console market. On a smaller note, this is from the mouth of an analyst, not a MS exec.
You can post definitions from Wikipedia all you want, but that doesn't refute the fact that demand for the PS3 was higher. This latest fiscal year, Sony shipped 13 mil consoles, 3 mil more than the previous FY. If demand had stayed the same, 13 mil would have been more than enough. But, even with 3 mil more consoles shipped, it wasn't enough to keep a steady supply in stores.
As for the shortages on Amazon, they only just got those a day or 2 ago. When I posted my first message on here a day before that, they were only selling them from Target. It had been like that for weeks. And before that, they were selling them from WWD. Amazon themselves got a shipment more than a month ago and were out within a week or 2 (during that time PS3 was #1 in sales in the video game category), and were sold out until now.







