At the time I originally started this thread, I was concerned the Sony was in big trouble. Blu-Ray only had a marginal lead, and PS3 sales were stagnant. I wasn't expecting Sony to walk away from gaming, but if they had, I wouldn't have been entirely shocked.
How do I feel now? Glad you asked. I really under estimated Europe. Obviously the PS3 was going to sell the most in Japan, and 360 in NA, but Europe became the swing vote. And it looks like the the PS3 will do fine there.
Then the Blu-Ray factor. Until Time-Warner, I really thought HD-DVD had a chance to beat Blu-Ray. The more mature feature set, and lower cost of production. No matter who the winner was, I really thought the war would go on for another year. But the fact that it ended so quick, and conclusively, will likely move a lot of PS3's, though it will drive the attach ratio down initially as people buy the PS3 for Blu-Ray players.
If Sony can string together a bunch of killer exclusives to take advantage of peoples new Blu-Ray players, that would do a lot to change the opinion of people who call it a Blu-Ray player.
Today, I would say, that I will be shocked if PS3 and 360 don't end up having nearly the same amount of sales in the long term. This is a win for the consumer.
~S