The only companies this hurts are epic and and midway. I don't think Sony's gonna lose system sales because of this. As you can see from a number of comments above, anyone really interested in UT3 will just turn to Haze and/or Call of Duty. Personally, I was leaning towards Haze from the beginning b/c it seems more console-friendly, but was gonna wait for the reviews to come in to decide which one to get.
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.
