As always, I think there are two issues at play here:
1/ Can Sony recover to some semblance of sales normality?
I think almost certainly they can - whether they will exceed the 360, or how competitive they are - its up to them.
2/ Will Sony win this generation?
No. The Wii has already won IMO. You can't release a console, gather this much momentum, and have *everything* in your favour (including the biggie - largest potential customer base) and lose.
...
At best, PS3 vrs Wii will resemble PSP vrs DS.
A worst, PS3 vrs Wii will resemble GC vrs Wii.
(I don't think Sony can do too much worse than the GC...)
Gesta Non Verba
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