How can last year be its peak year, when it is selling more this year?
I find it very unlikely that the Ps3's peak year will be 2007, heck - even impossible. :P
As for 2008, maybe. I definately don't believe in the 33% increase next year (which I did up untill ~ 1.5 months ago).
I figure 2009 will be pretty equal to 2008 for the Ps3. That means 8.5-10.5M.
There is no way Ps3 will die out in Europe. It is still doing very well. No doubt, it will outsell the 360 there in 09.
Ps3 has one HUGE advantage over pretty much any previous losing console.
The Xbox360.
Making a game for Ps360 leaves you the same (or at the most in 2009, a 20% smaller) base than the Wiining console.
Developers still seem to put their big projects on Ps360, rather than Wii. That's a fact.
So the Ps3 has a HUGE brandname in Europe, which is very likely to keep it selling for a while.
The 360, which ensures it a lot of great multiplatform games.
Another note is that your Ps3 vs Saturn is incredibly flawed. The Saturn ended with less than 3M sales in Americas + Others. Hardly comparable to the Ps3.
I sort of see the Ps3's life ala the lines of
2007: 7.9M
2008: ~ 10M
2009: ~ 9M
2010: ~ 7M
2011: ~ 5M
2012-eternity: ~ 4M
Which leaves it at around 40-45M. One thing that would be very abnormal about this, is the console peaking in its 2nd year.
An optimistic lookout for the Ps3 would be
2007: 7.9M
2008: ~ 10M
2009: ~ 11M
2010: ~ 9M
2011: ~ 7M
2012: ~ 5M
2013-eternity: ~ 4M
Which gives it 50-55M.
Still, you're looking at between 1/3 and 1/2 of the Ps3's total sales to be after 2009. I wouldn't call that dead.