1. Yes. But it will take time. Last year is a good example, Microsoft presented their Slim model, big price cut to go along, their biggest exclusive with Halo Reach came out and they launch Kinect which has been vastly more successful early on then move. On the other hand sony had no price cut, no hardware revision, a less successful new peripheral however they did get their biggest exclusive too in the form of GT5. God of War 3 is no to be forgotten either. Comparing the two it seems obvious Microsoft had the advantage and despite all this Sony sold about 800k more consoles. So yes i think PS3 will catch up but not this year. It will continue to be a slow process.
2. Not before Nintendo launches the Wii' successor. When Nintendo does launch in the next 2 years and if they stop production of the Wii then maybe within 4 or 5 years Sony has a shot.
3. For Microsoft i would have try a bit harder to not launch a ticking time bomb like the first 2 years worth of X360 were. For Sony, introducing Trophies sooner and keep backward compatibility. For Nintendo find a way to have some decent third party support for the Wii because right now if you have a wii and don't like nintendo's games your options are limited. Decent online wouldn't hurt either.
4. Sony and their first party company created some truly outstanding and varied games this gen. They got shooters, action, platformer, racing, sandbox, and whatever category Heavy Rain falls in covered.
Nintendo went from dead in the home console market to a dominant first place so they definitely did stuff right, mainly providing an alternative to traditional games. If you weren't into gaming before in the PS2/Xbox/Gamecube era the PS3 and 360 surely didn't change your mind But maybe looking at what nintendo offered did.
Kinect sure is different and again offers an alternative to anything else on the market. It surprising that sony didn't go this way since they did came up with the basic conpect first with the Eye Toy but in the end what matters is variety and Microsoft got that now.
