TVC: thank you. There's no denying Sony is in a terrible position right now, and they've been on the defensive since E3 (before really).
In the US the loss of DQ means little, but overall it's huge. If the PS3 does poorly in Japan, Sony as a company is in trouble. I think MS is ready to kick ass. The PS3 is going to go through the same sales drought the 360 suffered last year during the spring months. Except at $500-600, I expect this drought to be much bigger. I wouldn't be suprised if the PS3 is selling around 90,000 units a month in March and April, for instance.
Expect the Xbox 360 to win the holiday showdown. Halo, GTA, Madden. All on the shelf, for the same system. Game over.