Handhelds are more popular here.
Because you can take them wherever you go, can play what you want without anyone seeing what you're playing, and in general, are cheaper.
The PS3 and XBox are just too expensive for most people (not the arcade, of course, but the arcade is a joke and any gamer knows that to get the most out of a 360, you need the whole shebang.)
When the price drops, they will sell more, but I think the era of the hard-core television gamer is almost over. Why buy a PS3, when you can play FF on a PSP every day on the way to work?
(I have both a PS3 and a Wii, but I use my DS more just because I spend most of my time outside of the house.)
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