Somehow I don't see the PS3 competing against a 3x 3.5GHz G5, 500Mhz ATI card in a way that leaves gamers going "Wow, it's that much better, PS3 kicks Xenon's butt!".
I think we're at a brick wall now where graphics will not move machines. Casual users cannot tell which is the best of the three machines now. They all say "Xbox" because that's what every game magazine says but honestly, I don't see a gigantic difference on games. Probably because the PS2 is the lead console for so many games and I haven't played Ubisofts games designed for the Xbox on the GCN or PS2. But rarely do I ever think "Wow, that looks like a PS2, or GCN or Xbox game." not like how we used to be able to tell the difference between an N64 and PSone game.
If it comes down to online experience? Xbox Live has truly established itself as the best in the business. M$ did it up right. Online, real time voice translation? LOL Yeah, right, I'm sure it will bring the world closer. Not this generation Sony. I think they're up against a much more polished and sophisticated competitor this time. I don't think they're going to get away with the same power claims they did in overhyping the PS3.
Thank God for Microsoft. I don't think I could take another year of "PS3 is a supercomputer. Japan has forbidden its export because it could power weapons programs for rogue state missile designs. PS3 will be the center of everyone's universe allowing you to download movies, music, TV shows and network the entire home." I wish I could list the BS we heard in 1999-2000 about all the things the PS2 would do and still... in 2004 STILL isn't doing.