The PS3 and Xbox 360 have similar PPC cores. The general game code should be very easy to port.
They would just need to make the physics modular and tweak/recompile for the SPE/VMX units on the two machines. I believe both allow programmers to work in C, so if they design their physics code to port well from SPE<>VMX then I do not see the problem.
Yes, the PS3 will have about 2x the performance in FLOPs, but the VMX are pretty flexible and the xCPU has 3 PPC instead of one.
I think when the dust settles we will see we have made a big deal out of nothing for the most part. Each system will have strengths and weaknesses--some more than other--but cross platform games will be designed in a way to work as well as possible on both (if not all three), and first party games will FOCUS on the strengths and exploit them and stay away from any weaknesses.
What I expect is there to be a bigger difference this gen between
1st Party and 3rd Party
and
Large budget and Low budget
There was probably a bigger difference in systems this gen (PS2 with the under featured GS did well against the Xbox; the Xbox's 3GFLOP CPU did well against the PS3 6GLOPs CPU... some games exploited those features and made a big difference, MOST DID NOT... the average game was pretty comparable between the two less some minor IQ issues which wont be an issue this gen because of the choice of GPU IHVs).
The architectures are also quite similar. SM 3.0(+) GPUs that do Pixel and Vertex shading, PPC CPU cores, fast vector units for FP power (SPE and VMX), sound is done on the CPUs, 512MB of memory, the ability of the GPU to offload vertex processing to the CPUs. Even the system's other points are similar: wireless controllers with basically the same buttons, wifi, ethernet, internet out of the box, larger optical media than this gen, home A/V look, Media PC features, and so forth.
Really, the two systems are really very similar. I would say the differences last gen are only exceeded by the similarities this generation.
The art direction and time to really get a feature rich engine to exploit the power of the machines is VERY time consuming, and having the tools to allow the artists and map makers spend more time making game assets instead of waiting on coders. I think this is why we have seen an exodus to the UE3 Engine.