Jason, it's normal for consoles to sell millions at launch.
I don't think who wins has anything to do with who's better, but at the predicted GBP 250 (I think that's from Sony's first presentation of the device, approx. 450 USD) I can see the price impacting Sony's success. Your average "cool" teen already needs money for clothes, alcohol, tobacco and cellphones (more exactly, telephone bills, both cell and normal). Although they are Sony's target audience, the only form of portable games they know are the games on their cell phones. They won't really save up that much money when they already have their parents demand they pay the phone bills and everything. They might be able to convince their parents to buy them a console or handheld, but at that price I don't see parents agreeing.