First of all its the middleware that PS3 needs. Somewhere down the line someone like Criterion will develop a really efficient "Renderware", Polyphony are probably using a beta version of Sony's middleware. When this code gets out to the 3rd parties it will go some way to rectifying the problem. Midway are probably harnessing the latest middleware right now and thats why a sudden change of direction has been made.
See the problem lies that the 360 is very familiar territory, although MS probably give these 3rd parties middleware the tools to enhance it or reprogram it is easy. Thats because the chipset is essentially yesteryears chipset with a few turbos bolted on.
The cell is very different in architecture and 3rd parties don't want to get down to code level to get the best from the machine. They want a foundation on which to work from. Once Sony/Insomnia/Polyphony/Konami congregate their strengths, you'll see the fruits of ones labour. When this happens, I forsee PS3/Sony/Blu ray winning, because on most grounds the chipsets and hardware in the PS3 is more flexible (note I said flexible, not better). Flexibility essentially means freedom to make cheaper games, then the situation will be reversed and it will be harder for shoe horn all these new standards to the Xbox 360. Only time will tell if thats the case or not.
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