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Why do people think that if someone gets an HDTV, oh immediately the best complement is the PS3? The 360 outputs 1080p, has HDMI, has HD movie downloads and HD games. Even if some of them are 720p (and for PS3 most is still 720p anyway), you CANNOT differentiate it to 1080p using the naked eye unless you have 50 inch+ TVs.

Lets not forget that Blu-Ray adoption in the US is not going on a rocket growth anyway. All Blu-Ray really gives is extra space, 1080p only visible difference on 50 inch+ TVs. And only ~1% of all movie titles are out in Blu-Ray, and ~90% sell through is still DVD. And if you havent noticed, Hollywood isnt exactly in the healthiest and most creative state in its lifetime at the moment.

And we know who is going to win based on software as well.