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I have to agree with HappySqurrie!!

This is a price war!

Everyone can afford a Wii (even if they can't get hold of one) and it appeals to a bigger customer base.

 PS3 certainly has a huge fanbase from PS2 owners wanting to upgrade but with its current price and lack of games its gonna struggle.  I dont expect to see a price drop for a while,  cheaper manufacturing costs will help Sony loose less money and a price cut could be here by end of the year in time for xmas but I would'nt be suprised if it didnt come for another 6 months after that!!

This is also a format war.

Betamax was far superior to VHS but look what happened.

Blu-Ray vs HD-DVD could go the same way (I would champion Blu-Ray over HD-DVD basically because it has more storage capacity)

But what is the difference between Blu-Ray and HD-DVD?  Both formats will play films in the SAME 1080p resolution with uncompressed 5.1 sound (lets not niggle over compression formats etc) the point is they are the same!! There is no difference!!  Its a silly war!!

Betamax and VHS had big quality / resolution differences, VHS was inferior but the point is that there was a clear difference between the formats so consumers knew what they were getting, there was a clear choice.  Same with consoles Wii works on any TV and is affordablebut to take advantage of PS3/XBOX 360 you need to spend hundreds or thousands upgrading your TV for HD and buying a new surround processor for true HD surround sound etc.

And who wants a 1st generation Blu-Ray / HD-DVD drive NOT ME!! 

 There is also much boasting of Blu-Ray software sales trampling HD-DVD but hardware sales are much closer.

 I predict a draw/stalemate dual players will be the best choice!! 

 Console wars will become a more even playground, I dont know who will win outright, the point is the lead of victorous side will be significantly less than what Sony has had with its last two consoles.