Over the weekend, Yahoo via it’s Playback video blog series took a quick look at the ongoing console wars, declaring that the PS3 is struggling against the monstrous power of Nintendo and the resurgence in love for the Xbox 360.

Taking a quick peek over to VG Chartz we’re seeing that while Microsoft has had some momentum in Japan, which was no doubt a surprising turn of events in Sony’s backyard, the Xbox 360 is by no means leaps and bounds ahead of the PS3. The real question is, can Microsoft keep the pressure up with exciting releases and rumored price drops, thereby widening the sell-through gap? Also, what to do about Blu-Ray? Sure it’s a great format, but still not perfect and certainly not excepted among the mainstream. The driving force of monopolizing the next-gen DVD market doesn’t seem to be injecting Sony with a console sales push (and will it ever be referred to as the “Blu-Ray Market” among the mainstream?). So what’s Sony to do? Price drop? We certainly hope so, but can Sony really afford to bleed anymore with the PS3?

Regardless, neither of them can compete with Nintendo’s Wii, the comeback kid who everyone discounted at the beginning as being too gimmicky or under-powered. Seems the move to cater to the casual gamers, in effect carving out your own niche in the console market, was quite a brilliant move.