Personally IMO I see tons of people not going out to buy HD-DVD players, obviously. But, instead picking up PS3's.
The PS3 is now seriously in the same position as the PS2 was. The cheapest* next-gen player and also a game console. A practical choice for many. These things are gonna fly off the shelves just like the PS2 did.
Also since this was announced so early on in the year, in a time when most people aren't really buying (the "golden quarter" is done), then once this announcement actually affects the store shelves people will be buying again.
Yep, 2008 is Playstation's year.
I have many more points to add, but let's see how this plays out.
edit* OK maybe not the cheapest anymore. But it has the most value and bang for your buck.
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