Nothing flawed about it. Learn to read.

I said they will offer a price cut, not they will MATCH the price. That would be unnecessary and foolish as they offer a superior product.

A $99 360 would compete with a PS3 model in the range of $180-220 IMO. Production costs of PS3 were assessed at $330 in 2009. I think the price of components has come down drastically in 3 years. Or is that some flawed logic as well? 

Actually you said very little. You simply said 360 cuts = PS3 cuts which could imply a ton of different things. You also followed that with "Sony isn't stupid anymore." Which makes no sense and is an unfounded addition. Why would Sony risk more profits just to compete with a $99 360? The simple matter is that if they were "smart" they wouldn't. Much like the 360 hasn't matched any of the recent price cuts Sony made within the last 5 years and yet they remained incredibly competitive in yearly sales. Had the 360 kept cutting prices to match Sony the 360 would and should have already been $99. It is a lot cheaper to produce than the PS3. Instead MS chose to focus on profits which from a business standpoint sounds a whole lot "smarter" than slashing your price every time your competitor does.

Regardless, though, a $99 Xbox 360 would drastically outperform a PS3 at ~$200+. The current PS3 SKU's are only $49 more than the basic stripped down 4GB 360 console at $199.

"Superior product" is also an opinion based statement and varies from person to person. Yes, the PS3 is slightly more powerful and has Blu-ray, that's it. A "more expensive" product is an accurate and bias free statement regarding our current conversation.

With the Yen depreciation rapidly against the dollar, all Japanese companies will be able to better compete on price as their products before more affordable in other currencies, so that will give sony the ability to maneuver on price if and when the X360 comes down in price, it doesn't have to be 1 for 1 but if the price remains comparable, then they will still be on path to overate the 360.

Actually in mid 2010 they were actully getting a little profit on a $299 ps3 slim.  With the new super slim and it being almost 3 years, I'm sure production costs are closer to $200 than $300.

i thought the 99 dollar xbox shall come in november so maybe in october? ps3 is selling ~40k more per week right now. till end of october that would be 30 or 31 more weeks for our data.

40x30=1.2m

now i have no clue how much the average will be for the 30 weeks but if it will be 40k per week it will be very close end of october.

maybe there will be also a release of a game in japan i don't know about which will sell some ps3 consoles and i believe the last of us will also sell some ps3 consoles. if i wouldn't have a ps3 i would buy one only for this game.

I just hope people see that there is more costs to just production ones. Manufacture/Shipping/retail fees, and then profit margin.

Cheaper products don't tend to receive slashed prices if the more expensive competitor does. That'd be admitting your product is inferior. If MS felt that a price cut were necessary, they would. Obviously they either couldn't afford it, or the comepition's cut didn't do much to affect sales negatively.

$99 xbox would not outperform a $200 ps3. PS3 has better legs as is confirmed by the current sales with the more expensive product.

It's obviously superior, the sales reflect that. It has been the more expensive of the two units for its entire time on the market, yet the sales are virtually equal. 

Yeah cause it's not like this already hasn't happened...

Sure it was on contract but it didn't make sales explode. Why would this be any better since people buy gold anyway?

Oh yeah I know. Both the ps3 and 360 right now are getting pretty good profit, but with the 360 getting more than the ps3 though.  MS can easily cut the price and Sony can cut the price too.  Idk if a $99 dollar 360 will be profitable.  It may be at the end of the year, but I just don't see that it would be.  Unless the 360 parts are cheaper than I think.

It isn't global wide penetration, nor do most retailers support it. It is also a misconception that people buy Gold so easily. Most cases people just buy a 3 month pass here and there. 30+ million 360s arent even connected to the internet.

This would be far different.