I think that Japanese devs will focus on the Wii first, 360 second, and PS3 will come much later.
Why? The Wii is enormously popular in Japan (and to a slighly lesser extent, the rest of the world) and the 360 is easy to develop for, easy to add DLC, easy to do *everything* for.
Basically, I see a MS price drop in the next few months but it won't help against the Wii onslaught. This war is WON. Nintendo, again, showed their prowess tuning themselves to gamers. It's been awhile but thank you, Nintendo. We missed you.
Now it's up for second place. I think MS has it tied up in spades. A simple price drop, Halo 3, GTA IV, and Mass Effect, Bioshock, etc. and they have this holiday season. That's all they need to beat Sony.
I look forward to generation eight. We've seen a transition in console gaming and it's all because of Nintendo.
The Queen is dead. Long live the Queen.

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