Ajax: you're misinterpreting what Sony said. They said that the PS3 will have a 10 year life span, just like the PSX and PS2. They never implied that they wouldn't replace the PS3 after 6 years, and I can tell you that Sony fully intends to replace the PS3 when it is about six years old. They're not going to wait a decade to release a new console.
Saying that MS is in worse shape this generation because they're going to come in third place instead of second misses reality, and cherry-picks one nearly-irrelevent fact.
Microsoft's immediate goal is to generate a profit with their Xbox division. If they can do it by dominating the market, that's fine. If they can do it in third place, that's fine. They're closer to actual profitabiliy (year-to-year, not overall) with the 360 than they ever were with the Xbox.
