I tend not to put a lot of stock into what analysts are saying, but I rather agree with this prediction:

Microsoft's 360 console will lead in the console wars for two years, but after that the PS3 will take the lead - but not because of it's capabilities as a console, it will sell because people will think of it more of an affordable Blu Ray player instead of a gaming system.

This is what I've been saying all along!

First of all - the PS3 is the first Blu Ray player that I'll ever own. I'd like to be able to just go out and buy a next generation optical disc player, but I simply can't afford it. However, when it comes to the PS3 since it can play games and Blu Ray, I'm gonna throw down and get one.

Secondly, and more importantly, I think that Microsoft could have easily won the console war this generation if they had only included an HD DVD player in the 360. I can understand why they didn't - because it would have taken longer to get the console out, and because it would have significantly upped the price of the unit, but in my opinion, they could have gained a lot more than they've lost.

I think the format war will be partially decided by Microsoft's decision not to include HD DVD in the Xbox 360.

Source: Kotaku