The creator of the gif has already stated the correct pronounciation is a soft G. That being said, I always said it as GIF with a hard G. Maybe over time I'll massage my brain to say it the other way. I agree with booga - it stands for graphics so the soft g makes no sense.
theyve said that about every console since forever, and they always go down when it goes into mass production (or when they create a new nm process for the chips)