This is the result of making the PS3 the Blu-ray trojan horse. They might win the home video market (where they split licensing), but they're going to lose the gaming market. I don't know if that's worth it to Sony or not, we'll have to see how it all affects their bottom line by the end of this console generation. I love my PS3 as a Blu-ray player, but I haven't purchased a game for it since Warhawk (which I no longer own).
I think Sony is very fortunate that Microsoft didn't drop the price of the 360 any earlier or the PS3 would have already been steamrolled completely. I'm willing to bet, however, that a $275 Premium pack will hit before the PS3 dips below $399. Microsoft is in a very good position right now.
Nintendo is just crazy. I seriously think that if supplies weren't constrained that the Wii could have moved 2 million (yes, 2 million) units in November. My mom asks me every day if I've found any Wiis because all her friends and neighbors are looking for them for their own kids. I also still have friends trying to come by them and the media buzz is out of control. I can't ever remember a system keeping its pre-launch attention/demand up for over a year. It really is incredible.
By the end of the generation it's going to be obvious that Sony made a huge mistake by cramming all those features into the PS3. They priced themselves out of the war and confused the consumer. The 360 has just been a much easier product to understand and support from the get go.
