Its probably already been said, but whilst yes the gap is as big as its ever been, as a ratio of total sales its shrinking. Meaning, if that gap was 10million when the PS3 is at 40mil and xbox360 is at 50 mil (hypothetically), then thats nowhere near as extreme as when the ps3 was at 7 million and the xbox360 was at 15million. Thats not me saying the gap isn't bad, just that the financial implications of that gap are getting smaller.
As for Sony catching up, well its hard to say what impact a price cut for the PS3 will have. I mean at the moment in Oz the PS3 retails for around $670, and the Xbox360 Arcade is $250. The Pro is $388, so thats a massive price difference. As the PS2 showed, it becomes harder and harder to cut costs as you drop the price, whilst the PS3's hard drive will mean its price floor will always be higher than the arcade, there is still a lot mroe room for Sony to cut costs (with die shrinks, component integration, reduced power requirements) than Microsoft has.
There will be a day when the Arcade is $AU150, (current price of PS2) and the PS3 is $AU300. At that point, the most desirable console will win, because both will be priced in the sweet spot where its low enough for price to not really be an issue. And to be honest, given how the PS3 has sold at such a high price point, I'd say more people desire the PS3. They might get a Xbox360 is the meantime, but I think once the price drops down, a lot of those people will jump back across. A lot did it when the PS3 dropped to $699, and it'll continue to happen as it drops. We'll see.
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