If you go back to the 360 era, it was crazy to think Sony would ever get back on top. MS had nothing but major hits on their hands. It was the console to use if you enjoyed online play having all the major online games at the time. Halo, Gears, COD, etc. Xbox Live was the gold standard for multiplayer at this time, and have options like click to join game well before other services like steam incorporated it.
PS3 at this point in time lacked features, most 3rd party games looked and/or ran worse on the PS3. The controller's analog sticks are still known for the horrid deadzone. It really was a failure for Sony, and the system only really caught on near the end of the life cycle. Mostly in Europe. As a early PS3 owner I remember having to quit games just to read a message.
Times change. We already know what MS did to screw over their market share. If you don't think anything is going to come out of MS spending this kind of money you'd be wrong. During the 360 era MS didn't want much to do with the xbox division. Other than a handful of games the MS game studios were not well funded, and poor management kept pulling them in different directions. Kinect enforcement pretty much accounted for nearly half a decade of crap/games that never saw daylight. 3 years from now I'd expect a pretty heathy lineup of upcomming games from MS studios in full force.
Sony has had really great release pacing with AAA games over the last decade. It played heavily into the success of PS4.
