But doesn't that mean that Sony is in a heap o' trouble? This will be their second and, arguably, most important christmas in the PS3's lifetime. If they can't beat the 360 on a worldwide basis, does that cement a third place this gen?

While I agree with you Dolla, anyone could refute that by saying what Sony has been saying for a while now:

It is a 10 year plan.

My opinion: you have to make it through the first 5 years fisrt.

I think it's very likely, yes. Obviously they're in a heap o' trouble: they occupy approximately 15 percent of the total market despite the fact that they are selling their console at a loss. Anyone who denies Sony is in trouble is being delusional.

Given that in every generation the console that was selling the best 6 months after the launches were over has ended up selling the most overall -- by a long shot -- the PS3 already has to buck very consistent historical trends to become anything more than a footnote. And we're actually 8 months in right now!

They are already in trouble, and I consider this Christmas their final shot. If they are still considerably in third this Christmas and don't show signs of catching up, I will say that the odds of their "winning" the generation are very slim (say, under 1 percent. Nothing is ever impossible, but that would be close).

Nintendo Yoo? That made my day. Great.

 You can call this damage control, but I don't think that's fair. Whenever a reporter asks a critical question that's difficult to answer when you're an exec for a multi-billion dollar company, there are a variety of responses that range from "complete smokescreen" to "reasonable, honest response." You can call all these answers "excuses" or "damage control" if you'd like, but I think these answers given by Peter Moore are much closer to "reasonable, honest responses" than they are to smokescreen. His answers seem logical, and they are expressed articulately.

As a counter example, look at how Microsoft handles questions about Xbox Live's pay-to-play formula. I've seen several MS higher ups stumble on that question -- literally stuttering and stammering, then responding with things like: "We think the vast majority of people are happy." Sony has used many of the same tactics.

That is a smokescreen. Peter Moore's responses here seem... more like reasonable, coherent responses to me. But to each his own, I guess. 

I would say his answers in response to Japanese sales would also constitute a smokescreen. He makes a good case about improving his relationship with Japanese developers and companies, but desperately doesn't want to address how poorly the 360 is doing in sales.

 I agree with that, but that isn't what this specific topic is about :p

I think his answers on the Japanese market are honest once you factor in marketing-speak.

He basically says "yeah, we suck" and then goes on to talk about how he's trying to break into the market. He's not disingenous about it, he just talks about how hard it is to get into the culture. He's the first to realize that MS needs to do better there and if you read between the lines, he's mocking Sony for not doing much better in the market, which is kinda funny.

After listening to Peter Moore speak for awhile, I really like him. I might even like him more than Phil Harrison, a guy I really like to hear speak. Reggie is also a good time but he works better in written interviews than he does taped ones.

The only thing that's sad here is that while Moore and Reggie are the faces of their respective companies, Harrison is not. How Kaz is the face of Playstation over Phil baffles me.

"their 2007 just can't compete with MS"

==> Can someone explain WHY sony cannot compete MS this year ? and on which level ?

-about game ?
==> there are many exclusives on both system, so Sony is still able to catch Microsoft

-about sales ?
==> Xbox360 will not anymore catch PS3 on Japan and Europe
Sure it will do well in NA, but EU and Japan will balance.
-about price ?
==> we still dont know the moves that will be done at the end of the year