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Whoa, what shitstorm. I'm surprised to see a mod starting a thread like this.

The PS3 is currently seeing quite a large boost from HD-DVD dying, as the people who were interested in HD, but not interested in owning the next Betamax, are buying the cheapest available Blu-ray player. This will probably have a lasting effect on PS3 sales, which will go down over time as better and cheaper dedicated BR players become available.

The PS3 definitely has a strong advantage right now, but MS hasn't played nearly as many of their cards as Sony. It's far from over, and already closer than anyone ever expected a few years ago.