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Actually I think you will find that cellular phones are the largest online gaming system. More importantly they also receive the most online play. No console or hand held gaming system is likely to ever compete. You don't even have to buy games to play with your cell phones. I work with half a dozen people that play trivia over their phone at work no less. The most popular gaming device outside of cell phones is stand alone video poker. You know that piece of junk you can buy for ten dollars, and you have ten of them around your house somewhere.

I think the question is obviously in reference to the larger competitive console space. That being said yes the 360 has the far larger presence then any of the other consoles at the market. The machine was designed around online play, and online functionality so it is no surprise, and the best selling online game on the console is Halo 3 which has sold over seven and a half million units. Thats starting to get into Worlds of Warcraft territory, and its only been on the market for seven months. Sony would really struggle just to face off against that title alone. Ignoring the fact that its just one title on the 360.

To the original poster you are very right, and your friends aren't very bright. I recommend you make bets with them often worded perfectly so as to allow you to clean them out. I think after they lose enough money they will not have the energy to debate you in the future.