It does not matter what MS does next. The PS3 will outsell the X360 every week until the X360 is replaced by the next Xbox. PS3 has so much momentum in both Europe and Japan. Well NA PS3 sales are also picking up. The X360 is dead in japan, dying in both Europe and NA markets.

People say a price cut on the 360 could help out or games like Gears of War 2 and Fable 2 might help turn things around. I say BS. Sony has a stronger list of games that feature Resistance 2, Little Big Planet and Motor Storm 2. Sony would cut the price on the PS3 that would counter act the X360 price cuts. Sony does not sit back and watch things unfold.

MS made a fatal mistake by not cutting the price of the X360 when Sony reduced the price of the PS3 last November.

Over 30 straight weeks  the PS3 has outsold the X360 since December 2007. X360 had a 7.5 million lead during November 2007 and now it is down to a 5.5 million lead and PS3 is closing the gap fast. PS3 is catching up.

Discuss people "Is the X360 dying a slow death?"

The Titanic took a fair while to go down you know?

And at the end of the day, it was the biggest and most luxurious fish in the pond. Everyone thought it was a tragedy it went down.

Yep.  Almost an entire movie.

"BTW: This is the response to the PS3 is a money sink thread."

You could as well just have said "mods, please lock this thread as soon as you see it".

The situation in NA is, I believe, very much due to MS's strategy of only dropping the price by $50 after 31 months in the market. Is there any precedent for this is the console business?

Yet still selling better than last year.

I believe the X360 will be replaced within two and a half years. New Xbox to be released in Japan and NA in November 2010. Europe/Others would receive new XBox say four months later in March 2011.
How long would MS continue support for the X360 as soon as the new XBox is on market? A year?
MS deserted XBox users within 12 months of the X360's launch.
The third year of a console is historically the highest selling. The 360 is in its third year at the moment and sales will drop off.

the movie is still selling :D so thats a good sign

MS stopped selling the Xbox because Nvidia owned the GPU and didn't want to produce it anymore. How were they supposed to sell a console without a GPU?

In 360's case, they learned from their mistake and own the design of the whole console.

I don't think the 360 will ever be a dominate system like Sony was.Sony first came in and demanded respect,dethroning Nintendo and Sega.Nintendo said; "No,we don't want your CD technology.Go back to making tape players,Sony." Sony was upset at this betrayal and vowed revenge.The rest was history; two console generations of domination.A third to come. Not exact quotes,but funny.=]