Sony has set the bar too high, even it can't reach. Sure, they had the vision, but it's useless in the real market if no one can reach that bar by the time the console needs to be replaced which is slated to be 2012. The competition (Wii isn't really a competition) is just basking in the fruits of the market because the platform is understood by most. Not many people are interested in investing money to relearn a lot of things in order to do something, that's money they could have saved. Consoles aren't meant to supercede PCs as it will never, but you've got to look at the economy, try to earn as much money with the least investment and developing for the PS3 ain't it. Hopefully Sony comes out with an easier to develop system for the next one to regain its PS2 status.
Until then, Microsoft can enjoy it's number 2 spot.