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Fractal of Time said:
Why PS3 will surpass?
600-400=200 difference
Both consoles will have a price-drop this year or next year. They won't drop equally with $200 for example. It's possible for PS3, but it's to huge for 360. So 360 could cut with $100. The difference will be smaller overtime.
400-300=100 difference

Ofcourse 360 will be the first at a magical price point of $199. Then again there are no singstar, buzz or that sort of games for massmarket. And there is very very strong competition from Wii. It will be hard to make new franchises for this genre.

 You focused on price and not cost.

 

Cost  

 XBox 360 + wireless adapter +  2 years online = PS3 (with a bigger HD)

X Box 360 + HDVD player = PS3 (again with bigger HD)

 

 

If you look at the cost to get up and running they are nearly the same.  It wont take much of a price cut to get 

the PS3 to be a BETTER value then X Box 360.  Its been said in this thread, but Sony needs to put out  a 20GB , no wireless, no memory stick reader version out for $400-$450 immediately.  This model would sale near current xbox levels RIGHT NOW!  (with the right marketing) well and a game that interests the Japanese.