It's not gonna stay at this inflated state for very long, but I think overall sales will be higher week to week than they have been for the last couple of years. In America, sales should stay about where they are right now for a couple of weeks with the cheaper black core model coming out this week and the Star Wars special edition coming out next week. Then we'll probably see a small drop for a few weeks until the Holiday season really ramps up in November. For the rest of the year, I think the system might be able to stay neck and neck with the 360 in overall sales.
As for the games, I'm expecting Syphon Filter to be a huge success, but I'm not sure there's been enough of a marketing push for the game. It is definitely a AAA title, just go check out the reviews. The other notable titles are Silent Hill Origins, Star Wars, FF Tactics, and Castelvania Dracula Chronicles, but only two will really sell great: Star Wars and Syphon Filter. I think the rest will be solid. Then next year, God of War and Crisis Core will sustain some momentum for the first 6 months.
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.
