right now the xbox is a bit better selling and it has a better online service but i'm sure within the next year the ps3 will dominate just like the ps2 and the psone
I can't agree with this. I see nothing to indicate this other than going by name alone.
Let's look at the hard data. The 360 has sold 11.5 million units in the US. The PS3 has sold 4.6 million units in the US. That's close to a 7 million difference in units sold. There is no way it's going to catch that. The 360 will be dropping in price this year, making it attractive to people on the fence. The market that ps2 came out in is completely different from the market that the ps3 is in. If you come out the gate flat you're screwed. Sony came out flat. They have now lost 2 straight holiday seasons to the wii and 360 and they don't have any game for the 2008 holiday season that can compete with Gears of War 2.
The PS2 had no competition, neither did the ps1. The ps3 on the otherhand has the wii and 360. Also publishers run the video game world. The larger the installed userbase a console has, the more games publishers will put on it. In this case that's the 360.
Blu-ray is a non factor. Unlike DVD, people don't care about blu-ray. It's a niche format. DVD when it came out was the next natural step for home video. People buy their consoles to play games, not watch movies.
Nobody dominates the console wars for three generations straight. Sony thought the Blu-ray player would enable them to price out the PS3 originally at $600 and that was a breaking point for most people.
The 360 has done it right on all apsects, save the heat-sync three red rings problem. They solved it by taking a one billion dollar hit and giving out an unheard of three year warranty on repaired XBox 360s.