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As of March 13th, the PS3 has outsold the Xbox360 for two consecutive months in a row. The "hyped" crop of PS3 games is due out in a few months (Metal Gear Solid 4, Devil May Cry 4 just came out, etc), Blu-Ray won the format war with help from PS3, now Blu-Ray will return the favor. I already know a number of people who are switching to PS3's from Xbox's due to the fact that it has the Blu-Ray built in, and can play the same games (more or less). Take this in conjunction with the prediction that 40" LCD's will continue to drop in price, making the HD TV more affordable. Its Econ 101, the complement good's price is decreasing rapidly (HD TVs) therefore the demand for the good will rise. Demand for the competitors goods (Xbox360) has slowed. Wii is still doing strong because its crop of games are just comming out now, wait for the PS3's crop and I expect to see a jump in the price.