Sony is in trouble getting the PS3 out. Microsoft must be smiling.
The 360 hasn't done that well in Japan, but that market is very particular about the games. No killer Japanese game was available at launch. They've got the Square Enix people in their corner though, and I believe there are a few titles this summer that will remedy that. Here in the US, you still can't find one.
Consider this though... the average number of games purchased at launch was 3, which adequately covers the hit on the console itself. Sony isn't going to make that up if it costs $900 to build the damn thing.
I'll agree that 360 has some way to go to declare it a winner, but it'll get there with some of the forthcoming titles like Halo. Hard to believe that Sony is on the cusp of blowing a decade of dominance.