Doesn't look "dominance" to me aside from the initial launch (where the PS3 was supply-constrained iirc):

http://www.geekwire.com/2013/xbox-360-wii-ps3-won-console-ge...

Really, the winner was Nintendo, which sold a buttload of very cheaply made consoles for close to the same price as far loss-leading higher-powered competitors.

Of these companies, only Microsoft was spending profits from other sectors to build its position in the console market.

That's global figures. The US market was much more strongly polarized: http://vgsales.wikia.com/wiki/NPD_Seventh_generation

So... PS3 "trounced" Microsoft in the rest of the world?

citation please.

Not hard to find: http://vgsales.wikia.com/wiki/NPD_Seventh_generation

In the US market, the 360 trounced the PS3. A large part of this had to do with the launch cost being more than $100 lower.