Kutaragi has always come off to me as that cocky mo fo who you just can't beat; sort of like sports figures such as Muhammad Ali or Joe Namath. He came out with the PS1 with the vengence, feeling Nintendo betrayed him with Phillips, and he ultamitely won that first battle. Then with the PS2 he was able to kill the Dreamcast with the kind of BS smoke and mirrors attack you read about in ancient military history.
Moore is pretty balsy thinking he can win this time. One thing I like about MS is they adapted from some of their early mistakes. The original Xbox was pretty ugly and bulky, and they did their research and came back with a very sexy next gen system. They're at least trying to fix their marketing scheme, although it still seems forced in many instances. Overall, I think they have become a force in the gaming market. They came out of nowhere and stole 24% of the US market, and I think they have a great chance at having an even more successful encore with the 360.
The biggest issue I see with Sony right now is arrogance. They seem to be getting further and further to that bully/elitist area of business that market leaders eventually get to at one point (such as IBM or Yamauchi's Nintendo). Kutaragi belives that Sony's biggest advantage next generation is their hardware, and that developers should work to exploit this at all costs. The simple truth of the matter is that exploiting the PS3's potential is going to be very, very expensive. Some developers are already complaining about the costs and difficulty associated with PS3 development; id Software and Gabe from Valve have raised similar complaints in recent months. This could really hurt Sony if they don't play their cards right.
I don't think Sony is going to "lose" the console wars next gen, but I really think MS could cut into their marketshare. It's going to be much more close in my eyes. With so much money on the line, I think we're going to see a great battle for dominace between both of them.