"Your attach ratios are off. Attach ratios are LTD, not for the year.
The difference is that the Wii attach ratio has stagnated worldwide since launch, whereas the PS3 and X360 have not. The X360 started at 3.8, and is now at 6.8 in the US. The Wii, including Wii Sports, has stayed at 4.0 since launch, and up till now."
And this is why attach ratios are pretty much Worthless, with the Wii on pace to sell over 150m+ worldwide at the end of its life, even with an Attach ratio of 4.0 it would sell 600m+ of software. The Xbox 360 with its current pace of doing 50m at most WW and an attach ratio of 6.0 would sell only 300m+ software.
You need to sell hardware if you want to sell games. At the latest Nintendo conference, they showed slideshows about how the Wii has sold more clearly more software than the xbox 360 in the same time period, obviously the Wii also sold much more hardware thus they have a lower attach rate. Despite that, the fact still remains: If you have great hardware sales, it is likely that you will have great software sales, despite what attach ratio says.
And the problem is, software wise, the Wii isn't outpacing the X360. The X360 had 23.5m units of software sold in the US last year. This year, for the Wii, it's SOLD under 15m units. Even adding in Japan, which is obviously Wii-centric, the Wii still hasn't outsold the X360's 2006 total in both territories. It will due to Japan, but the US is very questionable.
But you are ignoring Europe, and it is widely knowed that the xbox don't sell a lot of software there. Just a couple of weeks ago we saw a rumor about most EU contries stopping selling XBOX 360 software because, well, it just doesn't sells. Wii in the other hand is having a lot of quietly success there, with games like Tiger Woods, MySims, Red Steel, Brain training, etc etc etc
Unfortunaly, we don't have Euro software numbers on this site to make better comparisions, however i don't think anyone will argue against the Wii having much better success in europe than the xbox 360.
Not only this, the obvious fact that the 3rd party software on the X360 has vastly outpaced the Wii's 3rd party software. The X360, from launch to November, had 6 or 7, 1m+ sellers (and 1 2m+ seller) games. The Wii has had only 2. So is that ultra-good for the Wii? No. Despite awesome hardware, software is still lagging. What happens when the X360 is still outpacing the Wii's software sales 2-3 years from now in the US? Devs aren't going to drop AAA exclusives on the Wii until a AAA game does well (Madden 08 ring a bell?).
While Wii 1st party software has vastly outpaced xbox 360 1st party software. And those 1st party games are exclusive, unlike 360's 3rd party software. You can get the same games with more features AND a cheaper price in the computer, at least for 90% of the games you are talking about.
Madden 08 has been perhaps the most disappointing game sales wise for the Wii, while we have a hell of a lot of games that exceeded expectations. Still, at 200k i'm quite sure than that game returned profits, taking into consideration that the Wii version obviously wasn't EA focus.
Besides, million sellers is another poor way to measure how a console is doing in terms of software success. Sometimes the games you release aren't expected to be million sellers. Even Zack & Wiki is not for the Wii. Is carnival games a million seller ? Is trauma center one ? Is MySims (Wii only) one? No. Are the developers happy with the profits of those games ? Hell yes. Most wii 3rd party games weren't expected to be million sellers, and they are not, however they are doing their job: Making very good profits for their developers.
I don't think developers care that much about having a million seller game as they care about profits. Some games, even at 1million are just breaking even.... sure it looks good to say "wow, my console has 100 million sellers, we are great!" however you must take into consideration that some games are more expensive to develop than others.
In this case the Wii offers the cheapest platform, and the easiest path to reach the bottom line: Make profit.
But at any rate, the reason the X360 will get 3rd is simple: The Wii obviously has the firepower to get alot of sales (65m or so), and the PS3, although getting slaughtered now, has the advantage of a decent Japan advantage (5m units+), and a slight advantage in Europe.
That 65m+ prediction sounds good for early 09 for the Wii.
The most the X360 can sell, under the optimal of circumstances, is 60m units. Having said that, the PS3 easily has that number as a middle-road point, therefore makes the X360 get 3rd place.
However, the X360 getting 3rd shouldn't be too dissapointing. Is 50m units for 3rd place bad? The best 3rd place has done is 22m units. The X360, even at 3rd, should double that ammount. Is that so bad? No.
I think you are heavily overrating the power of the ps3. The market already took their desition, and most of it don't want one. "OMG but the ps3 will be 250$ on 3 years!" By that time the Wii will have a price point of about 100$ and every family in the world will be looking for one. It is going to have TV-like success.