Though, at present, Sony's PlayStation 3 is lagging behind Nintendo Wii and Xbox 360 in console sales, analysts feel that Sony will win the battle in the end.

According to the report, “Taming the Waves: Games Console Life Cycles and Platform Competition”, and analysts from Strategic Analytics said that PlayStation 3 will have a much longer grip in households beating the current market giant, the Nintendo Wii.

Analysts forecast that five years down the line, PS3 sales will soar to 127 million units, while Nintendo will sell a total of 103 million Wii units.

Principal Analyst at Strategic Analytics, David Mercer, said, “Nintendo has done a great job with the Wii in bringing console games to new audiences. But its sales are now falling, particularly in mature markets, and its installed base will peak in 2011".

He, however, feels that PlayStation 3 will reach its zenith between 2012 and 2014.

Strategy Analytics think that once current-generation-console ownership reaches its highest point in 2011, the three huge game sellers will have to bring new consoles into the market to "maintain industry growth".

Sony believes that initial sales are not everything, PlayStation 3 is here to stay and will sell more consoles after the Xbox 360 and Nintendo Wii vanish from the scene.