HD players won't sell in significant quantities (regardless of the price) until HDTV prices come down to mainstream levels. There's at least a year before that happens. By then, Sony will have over 10 million PS3s sold and ready. The PS3's price will also be at $399 or lower.

The Xbox 360 HD-DVD add-ons have sold less than 300,000. Which means less than 3% of Xbox 360 owners have bought them.

Also, Toshiba's last sale didn't help:
"Toshiba Lowers HD DVD Sales Target" (by 44%)
http://www.tvpredictions.com/toshibaforecast061207.htm

There was also a white PS1.

The Xbox 360 sold 6 million in it's first year worldwide.
http://www.xbitlabs.com/news/multimedia/display/20061026175627.html

The PS3 has sold over 4 million worldwide since launch.
http://www.pro-g.co.uk/news/26-07-2007-6094.html

By November the PS3 will match or only be slightly behind the Xbox 360's 6 million. Which is actually better than the Xbox 360 since it's more expensive.

The Xbox 360 is currently on track to ending up in third. Microsoft should stick to software.

@Rob
The PS3's library is better than the Xbox 360's was after one year. The PS3's library after two years will easily be better than the Xbox 360's after two years.

@Dragod
The Xbox 360 is at 10 million because it had one year without competition. Since the other consoles have launched, Xbox 360 sales have plummeted. That's why Peter Moore left.

For the first six months of 2007, the Xbox 360 has shipped only 1.3 million worldwide (down 60% from 2006). The PS3 has shipped over 4 million. The Wii has shipped over 6 million.
http://www.gamepro.com/news.cfm?article_id=126688

The reason the Xbox 360 seems so popular on the geeky sites is because Xbox 360 owners are losers and resent anything cool or popular like Sony. The Xbox 360 is not a mainstream system and when the far cooler PS3 drops to $399 within less than a year it's going to stomp the Xbox 360 into the ground.

They didn't flip-flop at all.

You idiot journalists were just too stupid to realize that once the $499 60GB PS3s are gone they'd be replaced by a $499 80GB version. You're the ones who decided that after the 60GBs were sold the only PS3 available would be for $599, not Sony.

Next time, more news, less gossip. Mmmmmmmmmmmmmkay?