Erm, 360 already has 1080p, and games running at 1080i, the only reason those tests were done at 720p was because the PS3 didn't work properly at 1080i. atm there are no 1080p games yet for the 360, but it won't be long till there are, I'd be very surprised if between now and when the PS3 is released Microsoft don't release a HDMI cable... Fact is even though the PS3 has been released, there arn't enough units so Microsoft don't see them as a threat this Christmas.
However, the season which PS3 will be concentrating on will be Easter, and look what games are coming out for the 360 at that time, Halo 3, Forza 2, Alan Wake the list goes on... At that time of the European PS3 release, Microsoft, not maybe, will either knock the price down on the Xbox or release a new package and extra add-ons, what those add ons will be is unknown but a HDMI cable is very likley...
Like Marc says, they both look very similar, which I agree with... but this is the problem, Sony said "The PS3 at its release will blow the Xbox 360 away" This is obviously wrong! Sony's PS3 has been released and as those screens show, the PS3 seems to be exactly the same as the Xbox 360 or in some cases worse, yes you could say the console has only just been released and developers need time to get the most out of the PS3, but Sony said it would be beating the Xbox easily at launch... and it clearly isn't!
"The next generation starts when we say so"
So when will it start then?
PSN/Xbox 360 ID - Ianwoollam