Well, I think PS3 will stay at a higher basic level, and I think recent sales/annoucements will see it get far better jRPG and local support going forward.
However this isn't something that's totally self sustaining. The flow of titles must remain strong first and foremost.
I expect Nintendo to come fighting back.
MS seems to have found a higher level for 360, too, although I think with recent news of titles that were on 360 coming to PS3 (jRPG titles) the ability for MS to buy timed exclusives and use them to drive 360 spikes is likely to diminish and local gamers will more often chose to wait for a PS3 version.
One thing looks likely, FFXIII is going to save PS3 butt big time in Japan. If GT5 comes through then the PS3 might well end up looking very strong in Japan after all.
Try to be reasonable... its easier than you think...
