Xbox 360 vs. PS3. There's no question that the real battle in the HD home theater space will be decided predominately by these two gaming platforms. With the PS3 launch just a week away, very few movies available in either format and the sticker price of the stand-alone players in either format, it all boils down to this. Microsoft and Sony have known it for a few years now, which is why they've each bet the bank and called in solids from all their homies.
Personally, I think HD-DVD and Xbox 360 have the advantage, even though their HD-DVD drive was just released. While many in the industry gripe about the fact that Microsoft didn't embed the HD-DVD capability in their console, I think it was a wise move. The consoles were out on the market at an affordable price a year ahead of the competition, and the $200 price tag for an HD-DVD player is a steal compared to either format's stand-alone players.