Simple, the markets in which PlayStation is strongest have a later generation cycle than what we'd traditionally think of as the core markets. In the USA, Canada, UK, Australia, France, Germany last gen has been on the decline for a long time and in most of those markets (France and Germany being the exceptions) Xbox is a stronger brand so has seen more of a decline. Most of the current PS3 sales are coming from Latin America, Spain, Italy, Eastern Europe, Middle East and Asia - regions that peak 2-3 years later than everywhere else. This is why PS2 was still selling decents amounts every year until recently despite being dead in the "main" markets.

This is actually another point entirely and if Nintendo / MS can get a decent presence in these markets where Sony has always enjoyed a strong foothold then they have a real chance to make ground this gen.

Simple, the markets in which PlayStation is strongest have a later generation cycle than what we'd traditionally think of as the core markets. In the USA, Canada, UK, Australia, France, Germany last gen has been on the decline for a long time and in most of those markets (France and Germany being the exceptions) Xbox is a stronger brand so has seen more of a decline. Most of the current PS3 sales are coming from Latin America, Spain, Italy, Eastern Europe, Middle East and Asia - regions that peak 2-3 years later than everywhere else. This is why PS2 was still selling decents amounts every year until recently despite being dead in the "main" markets.

This is actually another point entirely and if Nintendo / MS can get a decent presence in these markets where Sony has always enjoyed a strong foothold then they have a real chance to make ground this gen.

Yeah. I said their biggest mistake was to assume those previous mega-hits will still work today but their second biggest is with their hardware. Most people have no interest in the 3D element of the 3DS (the 2DS is what the platform should always have been IMO) and with Wii U they know they need to do something to compete with tablets but don't really know what? Once they get it right and get the right software for Wii U (or some kind of successor / spinoff) and release some hardware-selling software then they may see some success again.

With both 3DS and Wii U, Nintendo released a new hardware element (3D and tablet) like they had the gen before (dua +l touch screen and motion control) but no software to show it off and make it a must-have. Until they can figure out the point of the Wii U tablet controller then nobody is going to buy it - simple as that! If they can, and convince the casual public why they need it like they did with motion controls - then they could turn things around enormously but at the moment that is looking unlikely...

They need the same approach as last gen but something that is innovative and new today instead of just recycling what was new 6-7 years ago.

What? You really don't listen to what I actually say. It doesn't matter what region the data represents, the same trends occur in every market. I'm not using data from one region to represent another region - I'm just using some actual data to illustrate a trend rather than just making it with no basis. I could show you multiple examples in every region of the same thing.

Actually, Xbox 360 outsold Wii in year 9 (according to NPD as you can clearly see in the graph) so that goes exactly against your point.

If you look at year 2 on that graph - then Xbox 1 had sold more at that point than PS3 and Xbox 360. And yet 360 ultimately ended up selling 3 times as much in that region. That is the point that is being made here - it is a marathon not a sprint and early sales don't guarantee anything.

If your father is just interested in talking to the tv, wouldn't he be far more likely to get the comcast x1 or another cable box that does that? The X1 is only $50-$100 if you already have cable. It doesn't sound like he's interested in gaming, so even at $400 Microsoft would have a really hard time selling to this crowd.

There was a 20 million gap between the PS3 and the Wii/360 in gaming largest market.  The 360 one year lead, the PS3's initial price point, lack of exclusive (including timed) and the Wii fad helped regulate the PS3 to last place.  Already in a month and a half the PS4 has captured 10% of those PS3 sales with an anemic lineup and $399 price tag.  We are already seeing Sony make up significant ground in a region it did extrmemly poor in and remain strong in regions its always have been.  How are Nintendo and MS going to make up ground when Sony can match them step for step?