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Lol, to answere the Question "Is PS3 REALLY selling that badly?" You have to define what badly is, don't ya?

Well, i see 3 possible definitions:

1. We compare the sells to PS1 and PS2.
2. We compare the weekly sells to 360 and Wii.
3. We compare the overall sells to 360 and WII.

If you consider the first, it is really not doing "Badly" not even "Bad":

http://vgchartz.com/hwcomps.php?cons1=XB&reg1=All&cons2=PS2&reg2=All&cons3=PS3&reg3=All&align=1

If you consider second, it does not "Badly" but definitely not good either. It's selling not more than 360 (about the same, worldwide), but definitely not enough to even see the WII.

If you consider third, it really does "Badly", because at the moment it is #3 and it look likes it stays #3 for at least a loooong time.