The reason why PS3 isn't making Xbox 360 suck it's cock the way PS2 did with Xbox in the 6th generation. The wrong sales tactics. Whoever is handling their sales right now is a moron. They are doing exactly the opposite of what they did with PS2, and letting the Xbox do what the PS2 did in the previous generation.
In the PS2 era, they used the combined force of coming off the strengh of the PS1 along with securing the big exclusive classic games of the time, and keeping reverse compatibility with the previous generation so people felt like it was a worthwhile investment for the high price of $300. This was also back before we had a completely shitty economy, so $300 wasn't as bad as say $499 now.
Now they are trying to sell the PS3 for that much in a terrible economy without securing the key 3rd party console exclusives. In addition, they are taking reverse compatibility off of the new PS3's, which I'm guessing is a tactic to make people continue buying PS2's as well as making people buy PS3 games, which are more expensive on the Blu-ray medium and they could get for much cheaper on one of the two competing systems because they haven't secured those games like Devil May Cry 4 and Final Fantasy XIII of all games, one of their flagship series', for exclusive release. They're also seeming to be starting to cut down the new PS2 games, like they are trying to force people to convert to PS3 instead of keeping strong sales for both
If they were to try to do what they did with the PS2 era with the PS3, they would mushroom stamp even the Wii most likely, they have the superior technology, they have the legacy of the PS2 behind them, they have the capability, They even have the FREE online service, the one Xbox forces it's members to pay like $50 a year for or something, all they need to do is the right kind of marketing. What they need to do is start a campaign that goes back to the old days.
On October 26th this year, the annaversery of the release of PS2, they need to have a competitive price drop down to $300, the price of the PS2 when it was released, and start some form of marketing Campaign that somehow recalls nostalgia around the PS2's release, that would include the announcement of the return of reverse compatibility on the new PS3 for PS2 games, and release some box package that would include some PS2 and some PS3 game or something like that, like the release of Metal gears 1, 2, 3, and 4 together, and at the same time they would release some MAJOR release, completely exclusive to the PS3, like a new Grand Theft Auto IV version or something, I dunno, and it would start trying to take all the major releases after that, like taking back the old stuff, like make sure Final Fantasy XIV and Kingdom Hearts III are exclusives, and continue selling for both PS2 and PS3 so all markets can be covered. They should also make more use of the Playstation Network, and advertise the free aspect over Xbox live's expensive membership. And all of this would be just in time for the christmas season so they can finally club Xbox 360 to death with PS3'S giant Blu-ray-high-def cock, the way it should be and keep it that way for the rest of the 7th generation and beyond
If only people were that smart...