It's funny--Sony just had to shove Blu-ray down everybody's throats, and now they are reaping the benefits of that choice. I believe that the higher costs associated with the HD drive just won't sell the console to Joe Public. The geeks who just had to have one ASAP have made their purchase, and now that the initial sales splash has been made, we are looking at quite a lot of $600 consoles lining store shelves. The average person just won't pay that kind of money. Meanwhile, it's still hard to get your hands on a Wii. Half the price of even the cheapest PS3 and it has a ton of games available--plus it's fun for mom and dad and grandpa to play. It's clear that the video game industry is driven by families and kids a lot more than by rich technophiles. Sony's loss is Nintendo's gain.
And with previously exclusive titles like Grand Theft Auto now going to the 360 as well, the writing is on the wall. Developers would have to be stupid to stay exclusive to the PS3 right now. The industry will continue to shift to non-platform-exclusive titles because that's where the money is. Final Fantasy will be too little, too late. (Although I predict the opposite for Halo 3.) Rockstar is going to make more money releasing GTA4 on the 360 (with exclusive downloadable content) than the PS3--and that is going to send a very loud message to the powers that be.