If you remember, the PS3 outsold the 360 during many months in 2008 (worldwide)...till September or October (I think it was September) when the 360 received a price cut and turned things around, then the reverse happened last year in PS3´s favor.

It seems another price cut for the 360 is expected this year, perhaps to coincide with the launch of Natal, or maybe even earlier....now, if that happens, do you expect the end of this year to play out the same way as it did in 2008? (meaning the 360 will go back to outselling the PS3 week after week, worldwide).

pretty much expected, if MSFT does a price cut.

its almost same but there is alot of difference between $399 and $299 in consumers minds

Yeah.

Isn't this what happened last year but in reverse?

There probably will be a price cut but it's not going to have the same effect as the arcade. With Natal being bundled I can't see them cutting price by more than $25, maybe $50 if they're willing to throw profitability out the window. So the overall impact won't be as great as 2008. At this point the ball is in Sony's field. If Microsoft does do a $25 cut Sony will probably match it, especially if the upcoming PSN premium service is a success.

Kinda.

Although this time, Sony have a HUGE exclusive system seller, which is at least one thing to try combat the pricecut.

If Sony don't do anything substantial though (Colours, $50 Cut, system selling game for Move), MS will likely walk away with it for another year.

Could be, although this year, Sony has both Gran Turismo and Move to sell some units, so if we're going to see the reverse situation, Microsoft needs the pricecut and Natal to take off very well. We'll see if Sony chooses to do "nothing" against them.

werent there rumors of a smaller ps3 slim? maybe that wud cut costs which = more profit or if they want they can make a price cut!

I wouldn't expect a PS3 cut, but I think you'll see attractive GT5 and Move bundles, and maybe larger HDDs.  On Microsoft's end though, I also suspect we won't see a cut and they'll just SKU reshuffle again (ie: bring back the Pro at $199, phase out Arcade, maybe throw in Natal for free, upgrade HDDs to 120GB/250GB).  I also really think we might see a new 360 "slim" to coincide with Natal launch, it's really now or never for a redesign...