The PS3, honestly, is not doing badly at all. It has performed really well in the face of a competitor that released a year earlier, and that it has yet to solidly prove that it's "superior" to. I think that alone suggests that the PS3 will likely win based on the Blu-Ray and brandname alone.
If there ever are a significant number of killer exclusives for the PS3 that leave the X360 crowd drooling, it'll be all over for MS. Ms doesn't really have a way to fight the PS3 tide, other than price cuts and lucking out, or spending a LOT of money on buying timed exclusives. It seems that MS doesn't really know how to call a good 1st- or 2nd-party game concept as a good one.. they seem to just spray-and-pray, and sometimes they get lucky, or they rely upon their bankroll to buy a good one once its a proven winner. Almost every great exclusive MS owns, they gained the exclusivity rights to well after the title was under way.
That doesn't bode well for the future. Eventually the MS stockholders will tell them to pull the plug on their games division. Heck they are probably trying to turn the X360 into a Wii right now, in a desperate ploy for decent returns.
