im having fun playing my ps3, once that fun stops- thats what i consider losing.

I think your example would work better if you used "original Xbox never lost to the PS2"

If there are no more PS3 games to look forward to. Which is certainly not the case.

If Sony started shutting down studios.

I loved the GameCube, all because of it's great first party titles. The same goes for the ps3.   In my opinion, Nintendo and Sony are the two best development houses and publishers in the world.

You're implying the Xbox was a better console than the GameCube.  That is a fallacy.  :P

ps2 managed to stop the production of the 3 (dreamcast, gc,xbox) consoles and have over 70% of market share, something legendary, and still selling now.

both 360 and ps3 are selling way beyong gc and xbox even the wii success couldn't stop that from happening.

The real answer is simple. Sony "lost" this gen when they tacked on a BR player in an attempt to push the format. Sony has had the biggest swing towards the red of all the game manufacturers in the industry. It's monumental, the difference in popularity, sales, and profit between the PS2 and the PS3. To top it all off, Sony is also getting handily owned in the handheld arena at the same time. Add that to the fact that PS3 owners have very few good games to play in the first 1.5 years of the consoles lifecycle...

...well the question isn't if Sony lost this generation. The question is now, has Sony destroyed the Playstation brand beyond repair. It doesn't matter if Sony starts, today, to have the best games on any platform as exclusives and stomps the Xbox 360 into 3rd place for the rest of this generation. Sony went from a resoundingly first place finish to a dismal 3rd place company that is on the verge of financial disaster. They have also saddled the customer with the most appalling addon ever in an attempt to further another industry at the cost of the Playstation brand, and gamers in general.

Sony is morally reprehensible, to say the least. Business minded decisions always hurt the most when they come from those you love. Even if you don't freely admit that Sony has already irrevocably lost this generation in every way possible, it's impossible to pretend that they've actually won anything, in the past few years. The company has the most inept and traditional management in the business world, and they stand as a shining example of how not to run a business. There are better managed lemonade stands.

I would consider this generation a loss if Blu-ray as a format failed.

But since BR is already successful and tracking above DVD's adoption rate, it looks like a success.

Oh come on, are you going to begrudge Sony their business tactics when most businesses do the same thing and Microsoft of all companies are their main competitor? That sounds like a MS PR statement. It would be ludicrous to think that Sony has destroyed the Playstation brand beyond repair. I mean, if Nintendo couldn't do it for ten years while being known by the masses as essentially the official Fisher Price gaming system, I think Sony is okay. Nintendo may have turned profits before the Wii, but losing so badly for ten years doesn't scream corporate intelligence to me.