Yeah I know there is a price drop and some games are starting to come out but they are just doing what other 3rd place console has done in generations past.  Cutting the price is very helpful but it just means you will have respectable numbers during this generation while the top console though this generation two consoles will leave you trailing behind. 

 Sony is obviously in a very bad situation having within the year already phased out 2 skus (20 gig and 60 gig) and cut the price on 2 skus (60 gig and 80 gig) losing alot of money along the way.  All within 1 year.  Honestly it was all just really bad planning by Sony and now they are paying for it.  The 360 didn't have a price drop for more than a year and I bet the Wii will be very similar which is what market leaders do.  They do things when they want to not when they have to in order to play catch up. 

Yeah is great that the PS3 is now cheaper but it still doesn't have the games to compete against the 360 or Wii nor the price as the 360 is still cheaper with 2 of their Sku's though yeah you can consider a PS3 a better value because of the blue-ray but we know how well having that has worked. 

 In terms of software I'll let the following quote do the talking:

“PS3 and Wii had zero third party titles in the top ten console title list for the month, while Xbox 360 weighed in with 3. Since November, third party partners have seen their titles hit the top ten 27 times for Xbox 360, compared to 2 for PS3 and 1 for Wii.” 

Basically as a 3rd party  developer/publisher you to be thinking twice about having games out only the PS3 if anything have it be multiplatform.   Funny thing is that quote will only get better as you will see games like cod4, guitar hero 3, assasin creed, need for speed etc be in the top 10 on the 360 just by the installed base numbers and 360 owners high attach rate. 

Of course this doesn't mean the PS3 will fail this generatiom but will just be in third place.

360 will be last place for several reasons, only sells in NA, it will be on the market the shortest, we have even heard reports that Microsoft is already working on the 720. 360/PS3 are selling at the same rate, none of Sony's big titles have hit the market as of right now.

I read alot of hope in your post.  I am going by whats happening right now for my reasoning.  Hey I could be wrong but man is it going to take a while to really know.

 Do you have references saying the Xbox 360 will be on the market the shortest?  And it's not uncommon for console makers to be developing the next console shorty after the current one is released.

 The 360 was been out for just about two years now, if Microsoft can make another system to come out in 2 more years they will kill the competition.  And Microsoft has the money to do it.  Nintendo and Sony will not make one in 4 years and they will slowly die off.  

I still think that there are a lot of people waiting for the PS3's price to go down, not the 40GB price cut but the full version PS3 with BC and that's kinda happening (the 80GB for 500$) which is excellent. Elnino you do have a point but I still think the Playstation brand is just too popular to be left in third place.

Yeah I agree about the playstation brand which is why it won't failt but we seen the Nintendo brand come in third last generation which has been well established in gaming.  I think that is one of the big reasons the Wii has done so well.  Many people like the direction the Wii went with and people trust Nintendo to make good games and at the right price point is no brainer why it is doing so well.  Again I doubt the PS3 will fail as someday it should hopefully lead to profits.  I myself will pick up a PS3 if they ever make a game that I would really want that isn't available on any other system similar to how I ma getting a Wii for Mario Kart. 

By the way I am pulling for Sony to work things out mainly so there is good competition so it may lead to cheaper systems, games and options for gamers.  Would love to buy my brother a 360 but just can't afford one for him but if Sony starts to make headway then maybe MS can drop the price so I can get one for him.  Honestly in the end the gamers are the ones winning this generation.

No offence, but I could actually say the same about your post.

Everyone who has an Xbox 360 here is positive about the future sales of the Xbox 360, and the same happens with the one's that have a PS3. Why? Because you all want the best for the videogame-console for which you have paid and the worst for your rival, so that you can play the games of the rival.

@Carazo

That or maybe because i wouldn't want to see SONY go down after all these years or on the other hand see Microsoft being the new leader in the video games industry, that would be for me terrible, i never thought Microsoft had been good for the industry other than bringing down prices for other consoles.

Releasing a consoles too quickly killed Sega's third party support and ultimately lead to their downfall. I doubt that Microsoft wants people to develop the perception that they're doing the same thing. While I think that Microsoft will try to release their next console slightly earlier than their competition again, I can't imagine them releasing a new one 2 years from now without facing massive backlash.

 Nintendo is sitting on a huge wad of cash. Not quite operating system monopoly money, but still they have more than enough resources to compete with Microsoft. Microsoft's gaming division doesn't exactly have a limitless money supply either. If the spend too much money without signs of a profit coming soon, the shareholders will start to get skittish.