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The upturn (though not as great as most people here seem to think) in the PS3 sales is due to Blu-ray and the PS3 finally getting the exclusive franchises in the horizon that people expect - GT5P and MGS4 and that is not coming out on the PS2. The next interesting battle is GTA4. Yes, there might be more PS2 faithful moving to PS3, but I think any percentage above 30% moving to 360 is still a battle won by the 360.

There are so many good exclusive games (yes and they are non-shooter as well) announced this year(when everyone thought, oh look at 2007, 2008 seems bare), MS already saying it has plans to keep 360 longer than the 4-year XB, I cant comprehend why people think 360 is on the way out. I think MS will double its development cycle for consoles given the current Vista disaster, so I predict XB720 to come in 2012 at the earliest.

In regards to current sales, as been posted, its better YOY and if you read current trends and even the mods comments on this site its currently a tie now, with a slight edge to PS3. Frankly, if the PS3 does not match 360 by now in its 2nd year, I would be pretty worried about the console.