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I think the PS3 will outsell the 360 in 2 years... 2009 christmas.

Japan is already in the hand of Sony... most of the top games that japan is waiting for are on PS3. They are just waiting for them.
So 20 millions or more for the PS3 at the end of this generation only with japan...
Sony has more influence than what people think in japan... If some games are multi-platform they are going to buy it on PS3... Sony is much more in the culture of japan than Microsoft..we havent seen Cellius/Namco-Bandai/Sony games yet... and Blu Ray is already winning there. So in Japan it's already over for the 360.

Europe is waiting for GT5, PES, FF13, MGS and Team Ico games... or uncharted drake's... Blu Ray is in good position there, and HD-TV are getting cheaper... When the price will drop, people will buy PS3 and hd-tv...
PS2/PSP owner will slowly take the PS3. The PS1/PS2/PSP integration in the PS3 will make a big difference... Like Home and multimedia possibility.
As an European Im sure that a silent PS3 with no red ring PS2 retro, PSP function and free online, a unique model will sell better to the mass market here than a 360 with tons of addons or version, an online service you must pay and bad life time.
The 360 has already got 2 christmas in Europe and the PS3 "0".. It's just the begining for the PS3 in Europe. And it's not so dark.

The only problem left is USA but with Europe and Japan in the side of the PS3 I think the PS3 will do great and maybe the PS3 will outsell the 360 there before the new Xbox.
Online distribution in the camp of Sony hasn't been described yet... and with the cheapest Hard drive and HDMI 1.3 + silence they are in very good position for quality/price.
Blu Ray outsell HD-DVD, Home will be a great success there and people will get the PS3 when the PS2 will retire... for games like God Of War 3 for example...

Time can play for the PS3 because with high new technology in it, Sony can lower the price more than the 360 with proprietary or old technology. The DVD drive or proprietary HDD will never be much lower than now... But Cell, Blu Ray, XDR, HDMI 1.3, 2,5" Sata HDD, bluetooth will get cheaper because a lot of products use them outside of the videogame market.
And for the software with time Sony can push greats games from all their studios... they can have new firmware... with time blu ray and hd-tv will be more mainstream... with time PS2 owner will change their console a PSP2 will come... there will be the new 6axis.
And in the near futur PC games will get better than 360/PS3 so some FPS gamers will returned to the PC versions of those games. The user base of the 360 are very hardcore.. lot of them have all systems... Multi-system will hurt the 360 more than the PS3 I think.

Price will drop, games will come + a new 6axis, great online, great functions and quality...
Maybe I'm wrong but the potential of the PS3 can only go up, more than the 360's one.

p.s:Sorry for my english :s