Sony would be doing a hell of a lot better, but they would not have dominated this gen at all. In fact, in this scenario, I see the Wii and PS3 being nearly identical LT.
The reason the HD consoles have done so well this generation is thanks to each other; it gave them both combined enough of a userbase to compete with the Wii alone for third party games. Since third parties had already started on PS3 projects, no one tried going for the far superior alternative of developing on the Wii, which was probably very different from these two, and instead developed for the HD twins at the same time, hitting a similarly large userbase.
In a scenario where PS3 is much weaker and cheaper, it would still have some competition from the Wii slowing it down early on, probably leading third parties to make all titles that were gonna be PS360 into PSWii, since you'd think they'd be similar enough to warrant this, with a weaker PS3. This would lead to Wii probably getting all the third party support it needed. Combined with Wii's superior first party offerings, I don't think the PS brand would've been enough to give it any significant edge over the Wii.

No and no.

This weak PS3 would have dominated, but at a great cost to us gamers.

The powerful competition from the PS3 made Microsoft set up the 360 which ended up making this generation much more advanced than it could have been. A route I hope to see followed again in this generation.

Hey, we've had the Sony/vita/ps3 is doomed thread the same amount so why not this?

Link?

People would have still been crazy about Halo 3, Gears of War, COD and Xbox Live.

It was for port begging lol, I said some Omerta game would be perfect for the Vita. It seems PC gamers asking for ports get a free check though, ie dark souls.

And I dont understand why I get criticized for, if a user posts banned material on a site I would tell him not to do that, I don't want anybody risking a permaban for a trivial thing like sales numbers.

http://www.neogaf.com/forum/showpost.php?p=41252205&postcount=1523

What's interesting is the PS2 was still outselling the 360 in 2005, 2006, and well into 2007. One has to wonder how much it would have sold if it's successor didn't release in 2006. Part of me thinks Sony could have waited a bit longer to release the PS3 and could have seen more success. Of course, they probably would have lost the Format War, but discs have been as insignificant as ever for the past few years. I'm no perfect analysis or anything. Just me thinking out loud.

Yeah I know, Halo was big last gen doing bg numbers too.