@ starcraft
The PS3 ISN'T relatively or significantly outperforming the Xbox 360. Coming off a marketshare victory over Microsoft of around 50%, Sony is now outselling the Xbox 360 by a few tens of thousands of units a week.
Like I said the PS3 outsold the 360 1.85 million comparing equal timeframes by March 2008. Currently outselling the 360 by about 40K to 50K worldwide a week on average during slow months I think is considerable. This trend is likely to continue considering the release of MGS4.
This all at a higher entry price and more headstart months for the 360 for Europe and many other countries around the world and Microsoft releasing all their big name XBox sequels including Halo 3 early on within the console's lifecycle.
Holiday sales will push larger volumes.
ony had to make a series of MASSIVE price cuts they never anticipated making.
No, they were anticipating price cuts. The entry price of the PS3 is about twice of that of the 360 in Europe. A pricecut for the end of this year is not off the table.
The tech in the PS3 is already outdated. The latest PC games look considerably better than anything on any console.
Game engines haven't been fully adapted for the PS3 yet, but already games like Uncharted: Drake's Fortune, Ratchet & Clank: Tools of Destruction, Gran Turismo 5: Prologue or even a cheap PSN title like Super Stardust HD are amongst the technically most impressive games currently available for any platform.
It has already become completely clear that any tech advantage the PS3 has over the Xbox 360 in the real world will be negligible.
Most developers claim the opposite, there's far more potential in the PS3. But legacy game engines need to be adapted. These game engines are huge and many of them outdated in terms of design, it's a huge task. But it will be done.
Hell, the biggest multi-platform game of the generation from highly talented developers was technically inferior (lower resolution) on the PS3 (GTAIV).
GTA IV was designed on the 360 (which makes sense considering mature dev kits were out for the 360 well before PS3 dev kits), but the PS3 version looks better overall. There will be bigger games for the PS3.
http://www3.telus.net/public/dhwag/400360.jpghttp://www3.telus.net/public/dhwag/400PS3.jpghttp://www3.telus.net/public/dhwag/burger1.png (360)
http://www3.telus.net/public/dhwag/burger2.png (PS3)
http://www.cupidity.f9.co.uk/b3da008.jpg (360)
http://www.cupidity.f9.co.uk/b3da009.jpg (PS3)
(Source: Beyond3D)
The PS3 version has a more steady framerate, less loading times and best of all far less pop-in issues.
Please don't try to imply Sony haven't been pushing the PS3 as hard as they possibly can. They have been hyping games YEARS in advance (Killzone 2 anyone
Killzone 2 looks awesome already.

Yes, future games will even push the PS3 hardware much further.