A few things you have to consider:
This is Microsoft’s first system. It’s Nintendo’s fourth non portable console. Not good progress going from one to three…
As many know, console makers make money off of software, not hardware. Some interesting sales figures I’ve seen posted over at HTF (from NPD.com):
GCN HULK VIVENDI UNIVERSAL May-03 45,726 $2,242,041
XBX HULK VIVENDI UNIVERSAL May-03 72,876 $3,531,086
PS2 HULK VIVENDI UNIVERSAL May-03 185,067 $8,981,055
GCN ENTER THE MATRIX ATARI May-03 129,590 $6,433,430
XBX ENTER THE MATRIX ATARI May-03 358,932 $17,591,680
PS2 ENTER THE MATRIX ATARI May-03 810,507 $39,576,240
XBX DISNEY’S FINDING NEMO THQ May-03 33,975 $1,358,973
GCN DISNEY’S FINDING NEMO THQ May-03 50,743 $2,028,826
PS2 DISNEY’S FINDING NEMO THQ May-03 125,025 $4,901,066
GCN X2:WOLVERINES REVENGE ACTIVISION Apr-03 31,687 $1,525,319
XBX X2:WOLVERINES REVENGE ACTIVISION Apr-03 62,516 $3,022,473
PS2 X2:WOLVERINES REVENGE ACTIVISION Apr-03 151,511 $7,175,371
GCN T.CLANCY’S SPLINTER UBI SOFT Apr-03 47,540 $2,343,271
PS2 T.CLANCY’S SPLINTER UBI SOFT Apr-03 430,621 $21,168,450
GCN NBA STREET VOL 2 ELECTRONIC ARTS Apr-03 68,787 $3,398,749
XBX NBA STREET VOL 2 ELECTRONIC ARTS Apr-03 180,343 $8,906,355
PS2 NBA STREET VOL 2 ELECTRONIC ARTS Apr-03 614,554 $30,308,370
XBX RAYMAN 3: HOODLUM UBI SOFT Mar-03 15,235 $556,954
GCN RAYMAN 3: HOODLUM UBI SOFT Mar-03 27,637 $1,041,840
PS2 RAYMAN 3: HOODLUM UBI SOFT Mar-03 41,637 $1,507,782
GCN MLB SLUGFEST 20-04 MIDWAY Mar-03 16,908 $596,415
XBX MLB SLUGFEST 20-04 MIDWAY Mar-03 20,293 $941,332
PS2 MLB SLUGFEST 20-04 MIDWAY Mar-03 95,502 $4,294,715
GCN VEXX ACCLAIM ENTERTAINMENT Feb-03 19,289 $745,402
XBX VEXX ACCLAIM ENTERTAINMENT Feb-03 22,734 $1,022,101
PS2 VEXX ACCLAIM ENTERTAINMENT Feb-03 39,803 $1,727,983
GCN ATV QUAD POWER RACE 2 ACCLAIM ENTERTAINMENT Jan-03 21,468 $649,240
XBX ATV QUAD POWER RACE 2 ACCLAIM ENTERTAINMENT Jan-03 85,823 $2,558,756
PS2 ATV QUAD POWER RACE 2 ACCLAIM ENTERTAINMENT Jan-03 95,369 $2,840,170
Maybe in console sales Microsoft and Nintendo are close, but Nintendo looks to be the clear #3 in software.