I disagree with the OP's assertion that PS3 is doing well.
Sony fixed their deadly flaws and will survive. When the PS3 came out, it was looking like the Sega Saturn. Now its looking like more of a cross between N64, Genesis and Xbox.
Price is still a problem though. $400 is too much for a console- the most I would ever pay is $300. Despite have alot of great games, I only bought a 360 when it went down to $300. Now that I have 4 systems, Ps3 has very little value to me, as I have more games available to buy than I can play or afford. As the Ps3's price continues to remain high, my situation will become true for more and more people.
Xbox 360's sales have been crimped by price, though a $200 arcade this fall would break the price barrier and help sales- in America. Wii is $50-$100 overpriced, but due to extreme popularity the Wii is basically immune to the price barrier at this time. Due to BD, PS3 may be able to sell at a relatively risk pace once it reaches $300. By the time PS3 reaches $200, it will be too late- the Wii will be the clear winner, and Xbox 3 and Wii 2 will be rolling out, forcing Sony to come out with PS4 or watch their brand mane die. The ten year plan won't work.
Sony had a terrible first year, but was kept afloat due to brand name. At this point the brand name has been tarnished, but Playstation should survive, as it has the advantage of Blu Ray, brand name, and free online over Xbox 360. All Xbox has is (at this point) is better exclusives.
Survival does not equate to success. As the former market leader, Sony's 2 main goals should have been profitability and market share retention. PS3 may or may not break even, thus failing to be profitable. A loss is a dismal failure unless market share is increased. For this reason the original Xbox may or may not be considered a failure, as it increased the market share for the formerly non existant Xbox brand. Sony, on the other hand, has lost a massive amount of market share. Adding dismal loses to a dramatic downturn in market share can in no way equate to success. While PS3 is arguably a good product, it is a failure. I really like the Sega Saturn, but that does not make it a success.