Its games division claims it has sold 5m PS3 consoles in Europe, putting it ahead of Microsoft, which had a 16-month head start in the region with its Xbox 360 and has been selling it at a lower price than the PS3's tag.
Both consoles still trail significantly behind Nintendo's Wii, which sold about 6m units in Europe last year alone, largely because of its wide-ranging appeal.
Sony claims the uplift in PS3 sales has been driven by its pan-European marketing strategy, which is aimed at making the console more appealing to hardcore gamers.
The PS3 was initially marketed as a multimedia device, offering gaming capability, as well as a built-in Blu-ray player and wireless internet connection.
'We focused too much on other aspects of the PS3 and there was confusion over what the machine was,' said Sony Computer Entertainment president Kaz Hirai. 'I have scaled everything back and have been repositioning the PS3 first and foremost as a video games console.'
As well as overhauling its marketing strategy, Sony is considering cutting the price of the console. The cheapest version of the PS3 sells for £299 in the UK, compared with £159 for the Xbox 360 and £179 for the Wii.
Sony is also encouraging games publishers to develop more titles for the PS3 in an effort to further boost its appeal. When Grand Theft Auto IV launched earlier this month, sales of PS3 consoles increased by 127%, according to Chart Track.
'Sony has big plans for the PS3,' said Jim Clarke, senior technology analyst at Mintel. 'Thanks to its marketing firepower, PlayStation has long been the most established gaming brand.'
Having tapped into the casual gaming market, Microsoft and Nintendo are working to extend functionality. Microsoft recently struck a deal to allow Xbox owners to access BT Vision TV services via their consoles, while Nintendo has tied with the BBC to make the iPlayer catch-up service available via the Wii's internet channel.
Despite trailing the Wii on sales, PS3 is arguably best placed to take advantage of market convergence. Sony's long-term plan remains for the PS3 to become a multi-media hub in the home.
However, for this strategy to be successful, Sony will have to overcome a unique set of marketing challenges.
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