OMFG, people still aren't using that argument are they? if it outsold 360 last year, i don't see why a the Ps3 can't outsell it this year. If Ps3 does outsell it this holiday season at the higher price and with 360 being cheaper, What does that say of peoples perceptions?

JaggedSac is right though. Not to take anything away from the PS3 as a gaming console but the advantage it has is it is one the cheapest and best BluRay player on the market. So if you are at xmas, want to have a neat new HiDef player... welll you get gaming thrown in with it.

I wouldn't say it's finish if it doesn't beat PS3 these holidays.

MS have done very well strategy wise, and so long as they continue to be the lead platform for most 3rd party titles, they should be fine (note: fine doesn't mean beat PS3 in the end, but it means it did it's job, reduce sony's stranglehold substantially). Based on attach rates, console install base and the fact that the PS3 has a very very very slim chance of passing the 360 by the end of next year, I would assume the trend with lead platforms on most third party titles will continue in the 360's favour.

With that in mind, we can assume that most games released in 09 (so announced in 08) and possible games in 10 (announced in 09), will still have 360 as lead platform. This in turn means that the 360 will still be a force in this generation for at least 2 more years, and by that stage, this generation will be entering it's final quarter (I'm assuming this generation will last 8 years, but history says 6) in which case Sony surpassing the 360 will be a formality (games wise, business wise, it'll of course be good for sony).

Of course this is all hypothetical and based on PS3 not surpassing 360 in outright sales until the end of 09 at the earliest.

i think it will be close to 26 million sold by the end of the year.

sounds about right i had pushed alittle bit harder thinking 27 is possible but hey im cool with 26

It should probably end up close to 26 million at the end of 2008. Microsoft needs to sell 4.2M units to do so, and with its low sales in Japan it more or less has to do so in only 2 territories.
Last year it sold around 2M units in the US in November and December combined and so far this year has tracked close to 2007. Based on this trend and adding in the rest of the Americas it might end up selling around 2.5M units until the end of 2008.
This means Xbox 360 needs to sell over 1.5M units in others. Given the huge drop in price this year which resulted in and the better sales compared to last year it seems possible, but its not a done deal yet.
I think it will eventually manage to get to that 26 million in 2008, but only just.