Research firm The Yankee Group believe that Sony's highly anticipated Playstation 3 console will hold off stiff competition from Microsoft & Nintendo to dominate the battle of the consoles once more. In a press release this week, it stated it believes that, "Microsoft is off to a fast start, launching the Xbox 360 nearly 12 months before the PlayStation 3. However, by the time third-generation consoles reach market maturity in 2011, the PlayStation 3 will once again be the market leader".
Additionally, the company predict that because of the high price tags that come with third-gen consoles, fewer will be sold this generation in comparison to the predecessors (i.e., PS2, Xbox and GameCube).
But it won't all be plain sailing for Sony according to The Yankee Group, who expect Microsoft to put significant price pressure on Sony during the PS3’s lifecycle. "In addition to starting at a lower price than the PS3, Microsoft is well positioned to make a large price cut in the spring of 2007 and each year thereafter - putting significant price pressure on Sony."
Source:
Yankee Group

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