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Well the PS3 did force the 360 to cut its price WW, and twice in Europe. Microsoft really has used the last of its trump cards in the console war at this point, and the PS3 has still sold more this year.

But I think we all assumed the PS3 would get a price cut. No one could have anticipated the economies horrendous year. Sony has their hands tied. The PS3 still has a good chance to be a hit, but the 360 will always have the pricing advantage, and really has most of the same games the PS3 has.