1)It's debatable whether the PS3 is selling. It continues to flounder in Japan and the GBA is slowly creeping up on it in the US, not sure how it's doing here in Europe though I heard that a big chunk of it's install base is made up of launch units. You can't really compare Sony and Sega, the latter being almost insignificant in terms of size and financial clout. I'm pretty confident due to PS3, Sony has haemoraged multiple times the losses Sega ever did with DC.

2)I thought after the disappointments of Lair & Heavenly Sword people would be more cautious before deeming unproven games AAA before release, guess I was wrong.

I've been on the inside track of several fads in the past and I can honestly say that people who use 'fad' as a negative thing for the Wii (implying that it will suddenly stop selling) really don't understand what a fad is or how it works.

Generally speaking, all fads which are centered around teens and adults are basically the wide spread adoption of an item or activity by the general public that had previously only been enjoyed by a sub-cuture. Even though the general public's adoration and attention on a fad seems short lived (typically 24 to 48 months) the popularity of the item or activity tends to extend for a long period in time in both directions; even after the fad has died down (and it is no longer the in thing) it generally remains somewhat popular.

Basically, a fad has several stages of progression

1. Core Subculture ('core gamers')
2. General Subculture ('gamers') and trendy early adopters
3. Connected subcultures ('Casual Gamers')
4. General Public
5. Late Adopters

If the Wii is a fad you would expect that it would be in stage 1 and (possibly) moving into stage 2 at the moment, most of 2008 would be in stage 3, 2009 and 2010 would be stage 4 and then 2011 and 2012 would be stage 5 ...

Yes ... yes it can.