I still believe that Sony's main goal was to leverage the PS3 to put Blu-Ray ahead of HD-DVD, and it looks like that has succeeded. It's pretty obvious that if PS3 had no Blu-Ray and $300/$400 models instead they'd be destroying 360 and possibly Wii as well, software or no software. They're cashing on in the PS1/PS2 success, and the gaming success of the PS3 was only a secondary goal to that - if they had to sacrifice their gaming market share to gain the HD movie one, I think that's a sacrifice they were willing to make. Not one *I'm* willing to make right now, though. ;>
That said I think PS3 will eventually overtake 360 worldwide and much later in NA as well, but probably won't catch the Wii. It might not profit much this gen with the hardware losses they're taking but if they succeed with Blu-Ray that'd offset it.
