PS3 to win console war?

I was browsing gamespot and found a interesting article talking about 1 company who have predicted that Sonys PS3 will win the next gen console wars. I found this very interesting because I personally think Sony are going to die. Microsoft have taken over the un-innovative company that makes solid consoles, and Nintendo have left no room for another innovative company so where do Sony come in. Sony used to rule because the PS1 was a new console with basically no opposition, it had a great controller and stunning graphics for the time. The PS2 had competition, and I think came out joint first. It had the best controller, a wide range of games, and not below average graphics. However, Microsoft have learnt form their mistakes and know how to make a decent controller. Plus, Microsoft and Sony both have external funds, so they can both chuck money at this, however, Microsoft had got pockets deeper than the Grand Canyon and definitely Sonys, so they can effectively buy Sony out. Also they have experience in combining everything together, which is what people want now. So this is why I think Sony have had their day.

Before I found out about the cost of the PS3 I thought that they would be able to hang on, keep creating consoles, selling them to their extensive fanbase (that is something they have in their favour) however, it is rumored to be as much as £750 which means half their target audience is gone. I predict doom.