The system that is putting the nails in PS3's coffin is not the Wii, nor the Xbox 360... But the PSP (Yes, Sony is killing Sony).
In order to explain it better you should see what the PSP offers:
- Good graphics
- Online gameplay
- Media Capabilities
- Internet apps (i.e. skype)
If you compare it to the PS3, Sony's console offers the same but better. But the PSP is portable, so any player would prefer it to a console because they can carry it everywhere and you can play great games with it (and there's no need to hook up to a HDTV and surrund system, is all "out of the box"). Since the gaming experience is almost the same, the PSP has the upper hand in many aspects. To many consumers it doesn't matter is the PS3 is a hell of a powerful machine, the PSP is "good enough for them".Just look at Japan and you see the PSP rising and PS3 decreasing.
Nintendo had a simmilar issue with the Game Boy. It actually was one of the reasons they created the SNES and N64 to counter the growing popularity of the GB series. We saw how the GB, GBC and GBA sales rising as the SNES, N64 and Gamecube sales decreasiing.... that's a secret behind the creation of the DS and Wii: two completely game experiences so one could not kill the other.
