No point in arguing that M$ has a bigger checkbook then SONY because it's 100$ fact. When Vista launches their piggy bank will get a whole hell of alot fatter.
Now when you wana go console vs console, their is nothing to go on but clear cut facts and you cant win soley on hardware or software alone. So many factors including affordablitiy, marketablility, ease of use, pre exisiting customer base....
From the great many consoles and handhelds before this we have learned that there are no constants in the video game industry. If your machine is superpowerful but has crap games no one will want it. If your machine is underpowered but has a couple good games then some people will want it but not alot. You need both, you really do. You can see compaines doing complete 180's on this too. Look at the dreamcast, plenty of games but underpowered... go back a gen to saturn... lots of power but no good games.