It is tough since it depends on who really wants it the most. That is, willing to sacrifice and take on more losses for sales. Sony was in 2007, because during the summer, its sales made it desperate. Will MS decide that 3rd place is good enough and let's just make some $$ on our games in this generation? Doubt it.

So, as things stand now, PS3. MS could go ahead if two things. Prices cuts are large enough. And two, in the newer produced boxes, RROD goes away. To shed that the image of a box that 'always' breaks, would do wonders for them, worth a price cut in itself.

Here is my 2008 x360 prediction: In 2008 you will see the first x360 games that require a hard drive to play. Core owners will be forced to upgrade in order to play the games.

PS3 is going to take it. The 360 should have another good year, but I think this is the year Sony gets it right.

@ameratsu: I could see them dropping the price of the 20gig HDD to $20 so people without them could get them easily if they wanted a game that required it. It really is ridiculous that anyone would buy one without a hard drive.

In Japan people Buy PS3 over x360, though PS3 has very few japanes oriented games, even less then x360. That will change in 2008, sony domination will improve.
+ All japanese x360 games don`t have effect x360 in sales.

In Europe people already prefer PS3 over x360, though Sony haven`t released it`s BIG games. Big games will be released in 2008, sony domination will improve.

In Usa, people buy Wii and x360 over PS3 because:
x360 has +2 games + cost 349$.
Wii has +1 game + cost 249$.
competitors are CHEAPER, they take some % of ps3 sales.
Probably competitors still will be cheaper in 2008, BUT thnx to BIG games, cheaper deals won`t be so attractive in comparison to that QUALITY, which PS3 will deliver in 2008.

Anyway, for most time of console market share.
40% of sales go to USA.
40% of sales go to Europe.
20% of sales go to Japan.

IF M$ won`t be able to improve in Europe and Japan, then Sony easy will sell more PS3 in 2008.

p.s.
AC6, ES, BD, LO, DoA4 didn`t help x360 to sell over 1 mln. So, practically x360 is DEAD in Japan, after FFXIII release, it will be TOTALLY DEAD.

in Europe, price cut could improve sales, but in that case, sony could react with their price cut, and then 299 euro vs 349 euro.
Price cut must be atleast 100 euro, i mean 249 euro, otherwise, PS3 will outsell total x360 sales in europe by the end of summer.

ps3 of course.....look at the newest weekly sales.....wii sales in japan were larger than xbox360's worldwide....i think this is something for microsoft to worry about.....they have no chance!!

ps3 will be better in 2008.... :P

Well, since Warner went Blu-ray Exclusive : ps3 will outsell by a VERY WIDE margin 360 in 2008. Blu-ray packed in is too much of an advantage since war is over now.

I expect PS3 to outsell 360 this year, probably by about 2 million.

I bet ps3 will outsell 360 by at least 4 millions units, and i think it can acheive 6-7 millions more than 360

PS3 - IF the Warners move kills HD DVD (hey whether its bought as a games console or to play BR movies its still bought!)