I think the war for the first place is done. Nintendo has done a good job with releasing their Wii. They entered a new era of console gaming = motion controls. PS3 will and second place. The reason why the PS3 will win is because it has games that are meant to be played on a console. 360 also has good games within genres that are preferred on PC. 360 benefits from PC but it also compets with the PC platform more than the PS3 does.
However Sony and Microsoft might announce motion controls at E3 2008. They won't be able to catch the Wii this generation. I do believe that such an announcement would kill Wii HD. Imagine PS3 and 360 with motion controls at the end of this year. That's 2/3 years head start against Wii HD. Nintendo needs to innovate again cause Microsoft and Sony will copy Nintendo soon enough.
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