WSJ.com - Will Videogame Race Go to Tortoise, Hare or Alien?: "Microsoft executives today are expected to say that the company has shipped to stores around 3.3 million Xbox 360 consoles, which they say is strong progress toward a goal of selling nearly 10 million by the time PlayStation 3 ships. That's an important threshold for attracting developers to write their best games for a system.
The company is expected to show for the first time Halo 3, the next version of the most popular game for the current Xbox and one of the key drivers of its sales. Microsoft will also demonstrate ways for mobile phones to link with its Xbox Live service, which allows Xbox 360 users to play games with each other over the Internet."
Later in the article:
"Sony announced prices for two versions of the PlayStation 3: One with a 20-gigabyte hard drive will go for $499 and one with a 60-gigabyte hard drive for $599, more expensive than many industry executives had hoped. The premium version of the Xbox 360 sells for $399. However, the PlayStation 3 will include the Blu-ray DVD drive, while a next-generation drive for the Xbox 360 will sell separately."
I suspect price elasticity is going to be a serious challenge for Sony.