With Sony, Samsung, Panasonic, Pioneer, Phillips, and JVC primarily supporting the Blu-Ray format, all these electronic manufacturer's will be competiting for the few who are switching from HD-DVD to Blu-ray. Remember as time passes and the second and third generation players come out, the PS3 will be one of the worst Blu-Ray players on the market. Gains to the PS3 format will be negligible in the U.S., and the 360 was never a factor in Japan anyway.
Actually according to sound and vision the PS3 is better than all the current first generation Blu-Ray players. Samsung is launching its second gen player (at 700 dollars I think). The reason PS3 will be the choice is because it costs less. I expect by year end we will see 400-500 dollars for the top quality blu-ray players. And I think we will see 250-350 for the top quality HD players.