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Confined to the presentations, Sony was the best. In the larger scheme, though, I think Nintendo was the winner as neither Sony nor MS did much to overcome their problems (this year, anyway).

MS still has time to do a price drop, but the can't wait too long. There's still a legion of PS2 fans out there without new games and looking to get into the fray. So long as the 360 and PS3 look comparable, the bulk of them will likely go PS3. MS needs to convince them to switch consoles, and that'll take a 1-2 punch of both the games AND a cheaper console.