For first party titles, everyone loses when a developer moves to another system. eg Microsoft bought Rare but Nintendo still owns Donkey Kong.
I thought Sony still gets the main Final Fantasy games exclusively, but MS and Nintendo can have stuff like tactics and chronicles. I could be wrong though.
Hell, I'm more of a nintendo fanboy than anything, but I think Sony will get their act together and put out all those awesome franchise games they own (I love the platformers).. Then maybe they can get back into the race.
Remember, devs hated the PS2 for at least a couple of years (though I guess it doesn't have the numbers this time around to be worth learning).
Maybe it's just hard for me to believe that Sony fucked up so terribly, even the DC did better in it's first few months