I agree with some points from both Cheapy and Wombat with the 360 marketshare situation.
The RRoD hurt them big. They shouldve been putting nails in PS3's coffin early, with the idea being that they would end up like the XBOX/GC scenario: Lose in Japan, win worldwide.
The ceiling on 360 marketshare is a larger issue that affects the PS3 as well, and that issue is that is it catering to a niche crowd, relatively speaking.
The last issue is price drops. The effect that the price drop has depends on your marketshare position. They have never been able to reverse the fortunes of a console.
For instance, when XBOX and GC had a price drop, the boost was temporary.
Meanwhile, when the PS2 dropped, it had much more success and served to widen the gap between it and their competitors.
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Another point on developer/publisher conduct. Yes, it does matter to some people. I will not be buying games published by Gamecock anymore because their people are dicks in public, the worst of which being the
SpikeTV incident. I'll have to go used, which is unfortunate, because they look like they are publishing some decent games. EA has been doing much better as far as corporate conduct, but their games still are lacking to me so it doesnt matter.