you are really mistaken, if you think, that a lot of people bought HD-Dvd or Blu-ray players.
While buying PS3, they will get very good quality player +
games for everyone.

in other consoles, they will get only games.
That`s why PS3 is perfect for FAMILY, it`s exclusively plays 1080p HD movies.
It`s NOT just a console.

That's the flaw on your theory why PS3 could do well this holiday. A DVD player (whether regular, HD-DVD, or Blu-Ray) is for family entertainment. Most middle class families (where most sales come from in the USA) do not want an expensive DVD player/videogame console. This day and age the consoles are mainly in younger people rooms. Nintendo is the perfect choice for families because its small, it can be kept next to the home DVD player in the living room where their little kids play, and as they grow into teenagers their trends will change and these youngsters will be moving on to the privacy of their room where they might get an upgrade later on. Neither the XBox 360 nor the PS3 are mainstream items, they are being adopted by the hardcore and some teenagers based on their parents decisions.

That`s why x360 software sales usually outsells almost twice, then Wii, while the differenece is less then 33% of sold consoles in usa.
yeah, sure, people don`t care about HD gaming. lol.

With games like Singstar, EoJ, GH3, LBP - PS3 is defietely mainstream.
And price is perfect now, for a system, which you will USE next 5 years.

 I bet most of ppl know that information?

I'll ask my parents... nope, they absolutely don't care.

Wait, my GF can maybe know that, she's younger afterall... nope, no luck there.

Hmm, maybe my younger brother (18) could know that, he's the owner of PS2 and plays it most of the time, he should know this... nope. Sorry, no luck - try next time

 Besides, BR ain't standard yet. So, not standard === not massive

 Hardcore gamers do care about HD gaming - therefore higher attach ratio for X360

Singstar and LBP are out? EoJ is a mainstream game? You can get GH3 for every of the 3 consoles

5 years are a loooong period. BR could loose to HD-DVD much sooner, which would make the BR player funciontality of PS3 rather... redundant? 

Don't know about worldwide but in North America the 360 will easily beat the living crap out of the PS3 this holiday season. (hardware & especially software)

Well sales for the PS3 in Japan can get a huge boost with one of the biggest RPG's the PS3 has right now, White Knight Chronicles. This is if it hits the release date, Late December.

I believe that the ps3 in japan is only a good rpg away from exploding so if white knight story does very well then things could get very interesting.

When did the last good RPG hit Japan? because I can't think of one.

I really don't think PS3 stands a chance against 360 this holiday season.. (at least in USA and Canada) The most telling evidence of this is that Assassins Creed is the best selling PS3 debut yet but it STILL was outsold more than 2:1 by the 360 version.