Is PS3 Defeating Xbox 360?

Why did Microsoft upgrade the Xbox 360? Is it being defeated?
Short answer. Yes, Microsoft is being defeated by Sony. Why do you think they, MS, is upgrading its console up to 120GB. When Micro$oft upgrades, it is because something big is hitting them. Just look back a Internet Explorer. IE was upgraded to IE7 when Microsoft noticed that Firefox was taking part of the market. Why did Microsoft upgraded to Vista? Because Apple's Mac was taking a slice of Micro$oft's pizza.

Whenever the competitors go on front, Microsoft will upgrade its product.
But upgrading does not always mean succeeding, ask Vista's user! Well there are not a lot of those out there. PS3 is ahead of the competition, which is Microsoft. As I have said before, Wii is out of the game, but in the game. Nintendo is selling pretty well, but they do not represent any danger to the two "giants." However, Nintendo is said to be leading the market so far.