What did I tell you?
Sony's just going to have to ride out 2007 and really make sure the quality of 2008 is of insane quality.
Motorstorm was shipped too early, Warhawk was reduced in scope and is good, but likely not great, LAIR looks beautiful but appears to lack high quality gameplay, and the demo for heavenly sword is beautiful, but cries of button masher and short will keep it down as well. I'll love SOCOM, but it's essentially SOCOM 2 HD.
So, from the first party perspective, that leaves Drake and Ratchet and Clank as the heavy hitters and Unreal Tournament 3 and Haze on the 3rd party side. 360 will get the lions share of Merceneries, Assassin's Creed, Rock Band, and COD 4 sales and won't be a differentiating factor.
Blu-Ray might be big for the PS3 with most of the big titles hitting Blu-Ray exclusively, albiet without Transformers & Bourne. I expect significant marketing tie in on this front during the holidays.