PlayStation 3 delayed until 2007?

Merrill Lynch thinks that the Sony PlayStation 3 release may be delayed until 2007. On top of that it's suggested that it will cost around $900.
The release date isn't even the biggest issue here. You can't get the already released XBox 360 from any store anyway.
They go on eBay for about the same $900.
When 2007 comes and the XBox 360 goes for $300 (or less) and the PS3 for $900 - which one would you pick?
I myself would get three XBoxes before that one PlayStation. Better yet, I'll save that extra $600 to ultimately buy a high definition plasma TV!
Games will never look the same again.