the 360's problems stem from its hardware issues mainly. But it also suffers from a lack of "high-capacity disc space", and standard HDD's.
The Wii is SEVERELY lacking quality online, and people (fanboys) are still ripping on its past-gen hardware.
Where as the PS3's problems stem mainly from it's price point, and (current) lack of Software.
But all the companies are trying their best for your bucks.
MS is trying to fix their hardware problems, doing as much as they can to compensate their consumers for any losses they incur, whilst still preventing bankruptcy :P. Lets not forget their most recent price drop, which is bound to move more consoles. (IMO they just can't do enough to match the PS3's "future" market strategy, including high-capacity, HD format, with a standard HDD)
Wii is working on its online, trying to open it up a bit more, and it is coming out with more graphic games. (But graphics aren't the Wii's strong point anyway)
And Sony is playing with it's price points, testing the waters to see how well price drops effect sales. I have a feeling once the 60GB systems sell out, we will see another price drop for the 80GB version. (If they don't, they will suffer this holiday season, MUCH worse than they have to.) Sony is also working on its online strategy, introducing Home, and patch 2.0 (still debatable). Also, lets not forget, in just over a week, a varitable FLOOD of QUALITY games (actually worth reviewing) is coming, starting with Warhawk, then Lair, and Heavenly Sword, all in less than a month :))
So all three are competing actively still. Its not like any of them are just giving up and saying "bah, screw the consumer, either they like it or leave it!" lol.
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