2003 is technically the Gamecube's third November, not 2004, which throws your post off a bit. 2003 was the Gamecube's best year by far, so it's not a good comparison with the PS3. Next year should be a better year, hardware sales-wise for the PS3 with the price drop, which is really the only factor as of now, holding back Sony. It's a really delicate situation they have on their hands between the PS2, PSP, and PS3.
*Side Rant* I'm starting to think that the PSP was a mild mistake on their part. Sure it has done well for itself in Japan, but they picked a fight with the incumbent candidate that people have been sufficiently happy with for the last few decades, and lost. The demographic that they were aiming for, just wasn't/isn't there. Cellphones have become so advanced, that most people have a cellphone that plays music and games, takes pictures, and lets them communicate with their friends with fast new interfaces. While the DS takes up valuable developer support and time. It's a double-whammy, that really has hurt the PSP. Think about it, what was the one thing that people wanted a PSP for back in 2004? It was to have everything from internet, games, music, and videos in one device, that could (hopefully) fit in your pocket, instead of taking multiple devices. Ultimately, they've have failed at this. In the end, from what I've witnessed as a teenager, it hasn't hit that "hip" teen crowd as they were hoping for. The younger crowd of 10-13 year old's that are too embarrassed to have a "kiddy" DS, and don't really care about the quality of the game as long as it is sports, racing, or violent have suddenly become their main market, if not indirectly. Could have Sony avoided all of this? Maybe.
The main reason why I think it has come down to the situation it is in is simple. Marketing. Sony's early efforts to market the PSP often showed the device as a multimedia player, and made no mention of games. This was a big mistake. The extra features distracted them, and ultimately failed as a bloated and mostly unnecessary format. I think they probably should have gone with digital distribution right from the start.
This is in sharp contrast to Nintendo's approach with the DS. With the kick in the pants they needed from competition, they came out with a clear and focused agenda right from the get go. They knew exactly what they had to do to win against superior technology. Their marketing hit all the right spots, from the casual with the Touch Generation Games, to the more appealing games such as Mario Kart DS and Metroid Prime Hunters. Now I won't go into to detail about their strategy, as I know you guys have all read that a few hundred times already today by looking at the NPD sales. If Sony came out right away, and said "Here's your Gran Turismo, here's your Grand Theft Auto, here's your Final Fantasy, and GUESS WHAT, they're portable," they would definitely be in a different spot right now.
This sort of brings me to my final point. Sony is fucking obtuse. How the fuck could they make the same mistake AGAIN with the PS3? An over-priced multimedia center... hmmm that sounds familiar. Oh wait, it has almost the exact same flaws as the PSP (Ok, there is a decent games selection on the PS3, I'll give them that). Personally, I don't see why I need another multimedia center in my house. One $1200 computer will serve the purpose just as well, if not much better. If the PSP was a mild mistake, then I would say so far, the PS3 has been a huge mistake. We've seen the effects across all of Sony, with the job cuts and finance cuts all around the board (I know this isn't entirely the Games Division's fault). The one redeeming grace that comes out of the PS3 for Sony right now is the fact that Blu-Ray actually won the format war, and partially because of the PS3. Even that hasn't seen dividends yet. Home and the Avatar system are both a kind of "me too" type reaction to a boat they have already missed. The non-universal online play (I'm not completely up to date on this) has been a pain in the ass for both us as gamers, and for companies developing on it. Are they aiming for the casual? Hardcore? Who knows. Sony's main problem these past few years has been focus, both Microsoft and Nintendo have clear directions they are trying to head, but Sony seems to be holding their map upside down, and just can't seem to correct it. */Side Rant*
Just some thoughts of the top of my head about Sony's current position. :lol Not sure if this is going to be well received or not.