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VGKing said:

PS2 - 150m+(low estimate)
PS3 - 63m(so far) + PSP - 73m = 136m

Not as bad as it seems. One of the reasons PS3 sales are so low compared to PS2 is because Sony also had to sell a PSP and of coruse, competition from Microsoft. I say they handled it extremely well. Any other company would have been dominated by Microsoft and Nintendo(which are corporate giants). Example: Sega

I'm not sure I follow the logic ... Nintendo had to sell the Wii and DS at the same time and are a far smaller company than either Sony or Microsoft.

Sony went from being the market leader and having third party publisers, developers, journalists, analysts and retailers convinced that the PSP and PS3 would dominate the market to their current position primarily due to self-inflicted wounds. The unfortunate thing is this is a trait that seems fairly common throughout Sony, and for more than a decade they have been trying to tell consumers what they want rather than to listen to consumers tell them what they want; and this mentality can be used to explain how Sony lost the gaming market to Nintendo and Microsoft, and why Sony lost the portable music player market to Apple.