We all know the winning 1st in a gen is the best outcome.But If Company X wins 2nd or 3rd what do they need to take away from it? What concepts and/or lessons do they need to apply to next gen? Does it mean if they win 2nd they had a good console but failed to connect? Or does it matter,as long as they make a profit?

Well it depends on how big the gap was in terms of units sold between first. second, and third place.
Also profit is the most important thing. If a console sells well but has made a loss overall, then its a failure in my opinion.

It means they are still doing well, unless the one in 3rd is MILES behind.

Good example is 6th gen
PS2 won with 155m and both GC and XB got less than 25m

What Hasanie said. It's relative..depends on the actual difference between all 3. It's not like it's a real podium

If company X wins 3rd or 2nd place, that would probably mean either Nintendo, Sony or Microsoft got 4th place or did a SEGA and ran out of the console business.

Sorry, couldn't resist.

Seriously, now. As long as you're making profit, I don't think the place you end up matters, as long as your marketshare isn't in a totally different league from your main competitor, being 2nd, 3rd or 1st doesn't really change anything apart from public perception.

they all
make profit, that's why they do it!

Not all 2nd and 3rd is the same.

Well, personally I dont care what place any of the consoles are in, just if there are games to play.

I dont think the companys themselves really care too much either, as the bottom line matters most. Doesnt help you to be in first place if it took a massive loss to get you there.

Then company X is automatically the loser!