If Sony doesn't drop the price by November, I think the 360 will pull away for good. Certainly at least in North America the 360 would cement its lead. Problem is, I don't think Sony's going to stay at the $399 price point. Sony's been getting closer and closer to the 360 premium price point every year. I don't think this one will be any different. $50 to $100 price cut coming in November.
My Top 5:
Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger
My 2 nex-gen systems: PS3 
and Wii 
Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.
