Pachter who is a super analyst has reported that the PS3 will take over in 2008. This is interesting news because the Nintendo Wii has done so well in 2007 while the Sony PS3 has gone off to a terribly slow start
However, Bluway is making great headways into dominating HD-DVD which means that more and more people will buy the PS3 so they can have the HD movie experience. Another large reason is that the price of the PS3 will fall to the just right price for many consumers.
I personally believe that Nintendo will have something up their sleeve such as lowering the price of the Nintendo Wii to compete with any PS3 rise.