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SlorgNet said:
This was predictable as far back as mid-2007. The moment decent software and a price cut arrived for the PS3, it was going to rampage. The Beast of BluRay will post monster numbers for the rest of 2008. Microsoft is in for a very, very rough ride.

I agree entirely, but at the same time this has been a relatively small turnaround and is not irreversable.  I'd expect Microsoft to make a move (probably a price drop) if the PS3 continues this for another 6 months or so and widens the current (tiny) gap.

I think this is good news for gamers as it will mean that the PS3 gets more attention and gamers can count on higher quality hardware.  Which is awesome, because Microsoft's hardware quality is outrageously bad.