| Sony has the upperhand in a lot of things. Aside from just the "console" portion, they have, I think a substantial lead. Now a days, Blu-ray is only getting better. I think it will come to a point that it will not only be as good, but it will surpass HD-DVD, of course, if given the chance...
Also I think that people will buy the PS3 just because it's Sony. My brother is a prime example. He's on the fence right now, but in his mind, he's owned a Playstation, a Playstation 2, and there's no reason not to stop now! With that said, he still probably will wait at least half a year before considering getting one, but still.
Regardless on how poorly I may personally think they are doing these days, I think Sony is still a brand name that everyone will want, so I don't think the bad press that I've seen will matter a whole lot in the long run.
I dunno, I have very high hopes for HD-DVD and Xbox 360, but I have a hard time believing that Sony won't eventually win out anyway. | 
