Sony don't seem all that concerned. They realize there's still time. Historically, the big guns have come out 1-2 years after the system's release. They never saw the need to launch with a killer app.

Every third party game can't be bad, but quality or not, people buy Nintendo systems for Nintendo games. Always have. Always will. Granted, this has been much more pronounced during the past decade.

I don't think you can say they aren't concerned. The Kutaragi ousting is a pretty clear signal of concern.

If that's the case why is PS3 support dropping gradually and Wii support increasing at such a large rate? And how effectively can the PS3 make a comeback if they're behind by such a large install base? There will probably be a 3-4 million difference between the PS3 and Wii when Final Fantasy XIII comes out, you know.

 And that's just in Japan.

 If they aren't concerned then they haven't done their homework, its very hard to recapture momentum in Japan, if not impossible, the japanese tend to stick with one console

 I don't think a comeback is unheard of...or at least not possible in this current generation.

If you're gonna talk about history about consoles in Japan it isn't going to do anything to help sony.  In Japan once a console gets a lead it just tends to increase exponentially to no end.  Japan is very trend based and when these trends get set early it is extremely difficult to turn them around.  Historically Japan only supports 1 console at a high level with 1 or 2 others getting 4-6 million.  Look at the sales the last 2 weeks, Wii outsold PS3 by something like 7 or 8 to 1.  Wii has won Japan, but it's gonna be a much longer race for north america and europe.

Problem is - everyone ignored the Wii so the third party droubt was always gonna happen but the second wave of Wii games is where it'll start to move move into the DS league or flop, time will tell.  I'm just suprised that knowing the third party support is currently scrambling to get games out - why isn't Nintendo releasing their games earlier? 

 The telling point for the Wii's make or break is if Nintendo can get their big hitters out before the demand drops to keep the gamers happy until the 2nd wave of games come out (No more heroes, nights, project rygar, project treasure island z, kopoona etc).  I expect they will but keep watching each months figures expecting them to drop any time now - these next few months will prove if it's a fad or not.

Uhm, Nintendo IS releasing their games. Super Paper Mario and Big Brain Academy just launched 2 weeks ago, and Pokemon for Wii launched a few months ago as well.

Top 10 best selling games in Japan of all time

Name	Console	Publisher	Japan	America	Others	Total
	Pokemon Red / Blue / Green	Nintendo	10.23	11.44	9.70	31.37
	Pokemon Gold / Silver	Nintendo	7.21	9.14	6.75	23.10
	Super Mario Bros	Nintendo	6.81	29.52	3.91	40.24
	Pokemon Ruby / Sapphire	Nintendo	5.35	5.65	4.13	15.13
	Pokemon Diamond / Pearl	Nintendo	5.27	1.21	0.00	6.48
	New Super Mario Bros	Nintendo	4.63	2.70	2.23	9.56
	More Brain Training	Nintendo	4.48	0.00	0.00	4.48
	Animal Crossing: Wild World	Nintendo	4.38	1.38	1.76	7.52
	Tetris	Nintendo	4.24	23.55	2.47	30.26
	Super Mario Land	Nintendo	4.19	10.99	2.96	18.14

The 'Big Guns' for Sony has always been Dragon's Quest (now on the DS) and Final Fantasy ...

Generally speaking Sony has never counted on 'Big Guns' to sell systems and focused more on maintaining decent sales year round  by releasing a steady stream of good games; this was enabled by their solid base of Japaneese third party publisher support. The fact that Namco-Bandai has said they're supporting the Wii more heavily than the PS3 is a huge blow on the PS3's ability to sell well in Japan; if other publishers take similar stances prior to Sony releasing 'Big Guns' in Japan it will mean that the PS3 has no chance of a comeback.

The 'Big Guns' for Sony has always been Dragon's Quest (now on the DS) and Final Fantasy ... Yeah, and now DQ is almost a Nintendo exclusive franchise ( 3 games for DS, 1 for Wii and I would bet that DQX is coming to Wii, on 2008-2008 probably, with some kind of connection to DQIX). And though FFXIII and Versus are on PS3, remember Square has 3 more games in the FFXIII saga, and my bets are that one goes to Wii, one to DS and one to PSP, with Versus being ported to 360. You forgot KH, which is a big franchise in Japan, though not as big as DQ and FF. It would be crazy to not put a part of its future game on DS and Wii. Having introduced gaming to women, putting a bigger enphasis on Disney and Sora and the crew, I think they can really expand that franchise. A Disney crossover is something quite irresistible for women.