Sony have screwed up bigtime. I'm sure the PS3 will end up selling 40-ish million over the next few years, but Nintendo and Microsoft are going to make big gains on Sony's console market share this generation.
ALL of the games I've seen that are on PS3 and Xbox 360 look better on the 360. PS3 fans whine that the powers of the PS3 have not been "unlocked", "But..but, it has the Cell!" etc.. That is totally irrelevant when comparing games that are out NOW. It does not matter that the 360 had a head start. Sony should of not gone with Blu-Ray and their systems would of been out there much earlier.
Gears of War is way ahead of Resistance graphically, several games have frame rate issues, etc.
Apart from Sony's dodgy practices, the other thing that annoys me is their lame catch-phrase marketing terms.
PS2 - Emotion Engine
PS3 - Cell, Reality Synthesizer... a multi-core CPU and Nvidia GPU