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Sony has to be aggressive right now. Microsoft is better positioned this holiday season than Sony is. If Sony not only continues to be outsold by Microsoft, but the margin of difference grows, then 3rd parties developers will be giving any future exclusives to the 360 instead of the PS3.

They simply cannot be seen as falling behind, or the perception will be it's stuck in 3rd place forever, which then becomes a self-fulfilling reality as buyers and developers flock to the 360.

And Wii is simply beyond Sony's reach altogether right now.