I think that the PS3 has a great chance in beating the 360. Right now, the 360 is like a giant army that can't really afford to wage war, b/c of the cash being bled out by the RROD problem.
The PS3 has a lot going for it:
1. Home
2.BD factor, which will mean a lot more once BD disks are more popular, which admittedly might take another year.
3. VOD - The PS3 will make a bundle with this, much more than microsoft has done anyway b/c Sony is a movie company as well, and they won't have to pay other movie companies for the right to sell. It is going to be all gravy for them.
4. Greater numbers of exclusives moving to sony. I have noticed a trend of sony getting more exclusives lately than it has been 5-6 months ago.
5. Production costs- All else equal, a PC or similar peice of electronics that has newer, and more expensive components will have greater reductions of production costs as a % of original manufacturing price, than a similar PC that has more basic components. So, its BD diode, the Cell, will all get cheaper quicker than the 360's stuff. And yes, I do realize that the 360 was cheaper to begin with, but that doesn't matter in the long run. What matters is 2 or 3 years from now, not the first year.
6. Microsoft's problems with the 360 brand. The 360 has had 2 years of unprofitable performance. With respect to budgeting, any company would be a fool to put a more than "normal" amount of budgeted $$$ to any division that has historically performed poorly. I would expect that microsoft would be pretty pessimistic with the 360's potential by now, and that they would probably be thinking about giving them a lot less budgeted $$$ than they have been, so that less will be lost and that more could be spent on divisions or projects that just have more potential.
7. Sony's vs MS's profitability - MS earns about 6X's what Sony does, but at the same time, sony's profit has been growing faster. With the BD just now becoming profitable, Sony should expect to get some very good profits in with having a monopoly on this format. Also, the PS3's profits have been improving, and while still negative, it looks like the division responsible for the PS3's gaming will turn a profit in this coming quarter or the one after that. Growing profits means more $$$$ that Sony can budget towards the PS3 as well as other projects.
8. The PS3's upcoming DVR service. I hope that Sony won't try to go the cheap route with this and give only DVR with bad resolution so that we can put 500 hours of movies on the PS3, versus 30 hours of high-quality video that I think that most of us would rather have. Either way, this product upgrade looks very promising, and is a feature that the 360 just won't have.
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Either way, the BD, DVR service, VOD , HOME, etc are all upcoming services, which means that the PS3 really hasn't lived up to its full potential yet. Right now, the PS3 is selling more than the 360, and with the 360's upcoming price cut, they will probably be equal. Either way, sony just has more $$$ to put to use on its console, and the upcoming product improvements will help sales by a substantial amount when all are online.