It really doesn't matter that Microsoft has the ability to manufacture more than Sony. If Sony an prove that their graphics and their sports, racing, fighting, and first person shooters are better than the 360 then people will wait for Sony. It reminds me of E.T. for Atari, they manufactured tons more of the game than the console and had to bury the games in a landfill.
Surprisingly enough I think the 360 has the strongest footing. PS3 is unproven to be a graphical powerhouse over 360, and isn't proven to be a profitable platform (only +60,000 games sold in Japan, thats not even a 1:1 ratio for games to console sales). The Wii still has a lot of naysayers and not all 3rd parties have announced game development for them yet.
Oh and the word Microsft and genius, that my friend has to be a typo.