Xbox360 would like to have a word with you. Sony, once a king of a hill is dying. MS out of nowhere is the market leader. You know the reason? Developers. MS really cares for its developers.
Sorry, but you could not be more wrong.
First, MS barely has any first party developers unlike Sony who has a ton. Sony has always taken are of their studios like NaughtyDog, and even the loyal 3rd party studios like Insomniac. Insomniac got all the perks of being a first party developer without being owned by Sony because Sony wanted them to be happy.
MS is the market leader because they started out a year too early (yes it was
too early, hence the massive hardware failures) and bought a bunch of exclusivity early on, killing any competition for the titles.
Sony is also not dying. More ps3's have been sold in the first 2 years of its like than 360's have been sold in the first two years of its life. You cant compare numbers as they are now because MS had a full year with no competition. Sony is doing just fine, have you seen the lineup for 2009 and early 2010? inFamous, Ninja Gaiden Simga II, God of War 3, Gran Turismo 5, Insomniacs next game (they have one every fall, so i assume they will do the same this year), Uncharted 2, Heavy Rain, MAG, White Knight Chronicles... Combine that with the multi-plats like Modern Warfare 2, Bioshock 2, Prototype, etc... All within about a year from now. The 360 just cant hold up to that unless MS starts announcing AAA titles left and right.
The first few years for the ps3 were terrible, but like Sony always does they start out slow and keep getting better.