what i see since 1st developers to the PS3 has somewhat push the hardware now 3rd party developers want a piece of the pie.

I want to change my vote I love Sony First Party Titles but I wish they would have spent the money to make sure stuff like Final Fantasy XIII, Devil May Cry 4, Tekken 6, and Metal Gear Rising never emerged on the 360. I don't know what that would have cost but having 4 more good exclusives would be worth the investment.

As long as they keep their ties with third parties strong as well

It's the best thing for them.

So far as I can see all the console vendors focus on 1st party, MS just does it by commissioning exclusives or agreeing exclusive content vs having a huge 1st party stable like Sony/Nintendo but in the end they are all trying to make sure there is enough exclusive content to differentiate their consoles.

So I guess Yes.

Yes and no, yes because its what has kept them afloat this gen and no because they need to regain the trust and support of the 3rd parties before the next generation rolls over.
At this point though, they're gonna have to get the support back next gen, things are what they are this gen and nothing will change dramatically before a new cycle begins.

In the end, I guess the answer would be yes.

Yes.