If Sony can improve the PS3s image MS can improve the 360s. especially since the thing is flying off of shelves even in light of the red ring issue.
Really im happy with where each console is, PS3 i think it may stay 3rd this gen, but is going to carve out a nice place, if you look at it as a HD media system and the bluray its already a winner,.
360 is a software monster and should keep 3rd partys happy
The Wii is Godzilla in console form