Maybe. More consoles does equal more sales, but multiple equally dominant consoles equals higher developer costs and increases complexity of the market in ways that drive game price rises though, so it's not that simple. On the other hand without competition normal market forces can't operate as well.

Okay, I've got it, all money-hatting and timed exclusives are forbidden plus any other stuff that harms any end consumer and they have to fight just based on their consoles specs and the games developed for them which can be either full exclusive only or multi from the start, no funny business with stuff turning up late and annoying consumers.

yeah good idea they should just both stop making consoles and let Nintendo have a monopoly.

Did you read my original post or are you responding to the title alone?

Couldn't the number of games dveloped issue stem from the kind of gmaes being made? Tough for Sony to win a quantity fight when Nintendo makes games like the Wii series and the New Play Control line, as opposed to games like Uncharted and Killzone that just need more time.

what r they gna fight for then? each want more consoles sold than the other = fight for marketshare, without that drive no innovation buddy

Why would we want them to stop the marketshare race? As a gamer, you can only profit from that.

You can't be serious.  Please tell me you are joking.

If not, I'm just going to assume you never played either game.

They can make profit, focus on software and becoming a competitor for the Wii, like I said in the OP.

When I say they should give up the fight for marketshare, I mean the expensive and unprofitable tactics they use to get as many consoles out there as possible, such as aggressive price cuts when they're selling hardware at a loss, and money-hatting for exclusives. Obviously I don't mean they should stop competing, cede the market or anything like that. The justification for the aggressive fight for marketshare is no longer there, it's clear that from this point on both consoles will be well supported, neither has the possibility of a PS2-like surge in developer support, and neither is going to be dropped like the Gamecube.

And naturally, I am talking about their interests, not mine. If I was to talk about my interests I'd say they should make the games I like and sell them to me for 50c, but there's no point in talking about things like that since it's their interests they would be motivated by.

if there was no market share fight nothing would ever happen (no pricedrops, no exclusives) why would you want that unless you want both consoles to fail?

You also contradict yourself by saying that they should start trying to be competition for the wii as surely doing this is another market share fight just against two companies instead of one????

I mean the fight for market share with eachother. The crossover with Wii is not so great at the moment, in order to fight for market share with Nintendo they need to enter that market. The point is that both continuing to fight is lose-lose for both companies. It's a very costly way to compete and for no prize. I don't think focussing on software would cause them to fail, but I do think that the longer they keep up a costly battle over no prize, the less happy their investors will be about continuing to stay in the console market.