Consumers in general have proven that you can make a crap product and still make a killing (Ipod, Wii, Anything from Abercrombie, Old Navy, etc).
I never said they weren't doing well with the console, just that their "victory" is a shallow one.
The 360 and PS3 all have plenty of new and exciting game lined up to propel further sales. They also have better online support and features outside of the typical gaming experience (like netflicks on the 360 or BlueRay support on the PS3).
The Wii on the hand has dealt most (if not all) of it's strong cards and has shifted it's focus to the casual market with such stuff games as Wii-Resort or whatever the hell they call it. It lacks the muscle to satisfy provide high definition gaming which is a big issue considering that the market entry of HDTV's is substantial.
When it comes to kid friendliness, the Wii certainly has the upper hand with its many titles, but the PS3 and 360 both have their own selections of games appealing to all ages.