Google searches or not, Xbox is still a weaker brand than Playstation. We've seen that in the current gen, with the sales rate for the 360 being much lower than that of the PS3. The XO isn't really positioned to improve market share, either, as it won't likely be very popular in emerging markets, a segment where Sony has done well.
As for the "most powerful console never wins" mantra, that's kind of meaningless. No one is looking at options and going, "hm, this one is more powerful, I think I'll pass." Other factors, such as price, are much more significant. Besides, with a sample size of only a few generations, drawing a conclusion from that is kind of a reach.
I think the XO will finish a close second or a close third. I also think Microsoft is potentially fine with that, as they're far more interested in "winning" North America than in the rest of the world. They want to integrate the XO into high-tech homes, where it can pull an Apple and coattail in other Microsoft products and services. They're looking squarely at households with disposable income, not at people scraping up change to buy a new game. I don't even mean this as an insult but Microsoft is not about gamers, they're about people who are willing and able to spend money on technology and entertainment.
