It matters because what the Xbox 360 has to climb in Europe is a hill, what the PlayStation 3 has to climb in North America is a mountain.
I don't think Microsoft will overcome its obstacles in Europe any more than I think Sony will in North America. But Microsoft will have an easier time overcoming perceptions in Europe than Sony will with what the PS3 offers consumers. Between now and the next generation, the Xbox 360 will continue to make inroads into Europe, where as I don't see the PS3 offering anything overtly compelling with the PS3.
The move to streaming movies and TV shows through services like Hulu and Netflix significantly changed the one significant compelling factor for owning a PS3, Blu-Ray. I think games wise, the Xbox 360 and PS3 are on an even keel. Exclusives in AAA retail games may take a nod toward the PS3's favor, but the significance of that has been greatly overblown. All in all, the types of games and their availablility on both platforms are pretty evenly matched. Games are a moot point. The PSN debacle has significantly hurt the perception of PSN. Free or not. In general, both services provide a similar experience, but the question becomes which one are your friends on. Ultimately that decides what console you buy and what console you play on most.
In Europe the PS3 a better online experience. Had Microsoft offered a more compelling service, or made more overtures to do so before 2011/12, I think they would have made more progress in Europe, but one of the biggest frustration points for European Xbox 360 owners is the lack of parity not only with the US offerings of the service, but even of neighboring states. That is changing, and 2012 will provide the biggest expansion of Xbox LIVE in Europe in terms of service offerings, but it may be too little too late. We'll see how things go once the service expansions are complete.
