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"This generation things are different with Microsoft having the headstart and Sony catching up. Microsoft has a decent lead and of course much more money to burn than Sony. There are nearly none 3rd party exclusives left for the PS3."

==> WRONG,
reading u suggest that there will be a lot of exclusivity for Xbox360 du to third party
but in fact, a lot of third party are coming to Xbox360 AND PS3 (multiplateform)
even if GTA IV is the exception that confirm the rule

" The past has shown that even the best 1st party isn't enough to effectivly compete in the marketplace, that's why I can't see Sony doing #2 this generation."

==> forget the past plz, it never happen 2 times ...

" 360 is doing horrible in japan, but so does the PS3. "

==> you re right
BUT
PS3 doesn't have game for the moment
that is not the case of Xbox360 (bluedragon specially targeted for Japan)
Xbox360 will never sell in japan, it offers nothing interesting for japanese people
that is not the case of PS3, slowly but surely, it will begin to sell (think to eye of judgement/everybody's golf, 300k preorder). Wait&See

"America is already locked in favor of the 360 in the fight of the HD consoles,"

==> I think too, PS3 sales but 2 5NPD)  or 3 times (VGC) less than Xbox.360

" which leaves europe and others. I doubt that Sony can offset the 360's lead in america in the other parts of the world, the PS3 is doing pretty much everywhere bad at the moment and instead of gaining it's losing even more ground every week."

==> WRONG,
PS3 does not bad ocnsidering the price and no game currently,
at the opposite, Xbox360 have more game, better price and don't sell very wel in europe (except in UK where Xbox360>PS3) ...
the fact that PS3, with no game and bad price, is no outcompeteted by Xbox360, just show us that nothing is done in europe ...
and when you know that in gamer numbers : europe = usa
you understand why the world war is not over (for PS3/Xbox360 fight casue Wii is .... Wii ^^)

"It's already too late for Sony to change their game plan in this generation. After the launch of a console there isn't much more that can be done other than pricecuts and improving on the existing strengths of the console."

==> right, now it is over about changing this
they just have to hope that "their game", going to be exclusive to PS3 will be able convince people to buy the most expensive system



Time to Work !