Very nice DS and Wii sales. It looks like this is the beginning of the shipment increases, and the demand seems as high as ever. All of Sony's hw sales are troubling. PS2 is winding down very consistently, PSP is dropping quicker than I expected after having such a good run, and PS3 is approaching disaster levels.
PS3's possible salvation centres around FFXIII. To be honest, even if it remains exclusive I can't see it becoming the dominant console in Japan, at this point Wii is just too strong, and Nintendo hasn't really started with their releases! However, I think FFXIII is going to be an unsual product. IMO, it's either going to be the first new main FF which is multi-platform, or it's going to have horrendous downloadable content.
If FFXIII remains PS3 exclusive I think it's going to end up primarily a downloadable title. You'll buy the base game with early chapters at retail and then S-E will milk consumers dry with downloadable episodes, with the full game costing $100 - $200 (or even more) over a period of months or years. The game's development budget is just going to be to high and too long in its current state of visuals.
Whatever happens with the game something's going to give, whether it goes PS3 download, ends up multiplatform, or Wii exclusive, it's going to end up pissing off some people.
As for S-E and Japanese Developers in general, at this stage they would have to be retarded not throwing major resources behind exclusive Wii content.