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Great another "well researched" report from an analyst. Only a fanboy would think the PS3 winning this generation is a foregone conclusion. Even Sony fanboys are starting to waiver. Analyst were still predicting that the PS3 would sell 4.5 million units by the end of 2006 after Sony had dropped its target to 2 million. As for the PS3 having "more exclusives", I find that highly unlikely. PS3 exclusives continue to come over the 360 at a rapid pace and I can only think of one 360 exclusive, {EM} Enchant Arm, that is hitting PS3. With MS maintaining their exclusives while pilfering the PS3's exclusives, how are you coming up with the PS3 having more exclusives? As for the pricing issue, Sony is screwed. MS and Nintendo are making a profit off of their hardware NOW. Sony is losing over $200 a PS3, this is occuring while they are selling at a higher price. They'd have to significan't reduce the cost of producing the PS3 just break even at their current price level. This is going to dog them all year long. When the holiday season does roll around, MS and Nintendo will be dropping their hardware prices and STILL making a profit. Sony will be hard pressed to drop the PS3's price at all. If they do, they will be losing money not profiting like their competitors.