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Avinash_Tyagi said:
Yeah Sony has pulled out nearly all the stops to try and catch the Wii but without much effect, the Nintendo on the other hand has most of their bullets left

Correction: Sony pulled out all the stops to avoid falling flat on it's face and having "Playstation 3" replace "Virtual Boy" as gamer shorthand for unmitigated disaster.

 It was pretty clear mid-year that the Wii was unstoppable - it was going to pass the 360, and the PS3 had no chance in hell of catching it this year or next. All Sony could do was ignore the competition and attempt to right it's own ship. To their credit, I think they have largely succeeded in doing so. Now they can focus on closing the gap with the 360. In a year or two, when they have dropped the PS3 closer to mass market prices, they can worry about Nintendo if they feel it necessary (odds are they won't bother, as the gap will be too substantial).