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The rumors of Sony's demise are greatly exaggerated. VGChartz data for console sales, 2007:

2007
Wii 16,367,357
PS2 9,066,240
X360 8,143,662
PS3 7,630,237

Market share by units: Sony 40.5%, Nintendo 39.7%, Microsoft 19.8%.

Unit sales for 2008 to date:
Wii 3,937,176
PS3 2,561,622
PS2 1,947,201
X360 1,878,235

Market share: Sony 43.7%, Nintendo 38.1%, Microsoft 18.2%.

Conclusion: we're down to a two-horse race.