For what we know, with both MS and Sony having moves available to counter each other, it could continue roughly this way, with PS3 outselling XB360 WW, but by a small margin and being outsold in USA. So MS would end its 7 years lifecycle unbeaten in USA and maybe WW too, while Sony could surpass MS during the last 3 years of its 10 years lifecycle. Both could be moderately happy and end this costly generation with a small net profit. Seen from this point of view they could actually be simply pretending they are fighting each other, but trying to not hurt themselves too much in the process. In support of this theory also the fac that by now even the stupidest of MS execs should have realized that Playstation 2 and 3 weren't the deadly danger for Windows in the living room they initially feared and that now the real threat could be Nintendo's next gen console (the current one is by project choice a gaming machine only, unable to become a general purpose living room and multimedia PC), if it just so wishes.