Stu got it. Who's beating who in the industry means nothing, it's about who's making money. Nintendo and Sony are both bringing in profits, Xbox is not. They are already taking steps to try to reduce losses on Xbox, but it won't end them. With Xbox 2, Microsoft needs to make a machine that's profitable. If not, it would be a tough sell to corporate execs to let them go on.
There's no garauntees what will happen next generation, history will prove that. Sony has made large amounts of money, and has room to take some initial losses on PS3. They also have enough money to go on if PS3 flops.
Nintendo has been bringing in profits all through N64 and Gamecube's day. You can say they failed, but in all reality, they're not. N64 brought in profits, Gamecube is bringing in profits. Nintendo's far from being in a bad situation financially, because they aren't losing a dime. You don't drop support of something that's bringing in money. Market share means nothing, this is a business, and it's making money. That's all that matters.
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