Based on the last few weeks, world wide the PS3 has been outselling the 360 by about 50,000 consoles- roughly 200,000 per month, 2.4 million per year. Will the price cut have any sustained effect on 360 sales, and if so, will it be able to match PS3 sales? Heck, is there a chance that it might cause a drop in PS3 or Wii sales?

Uh, both this week and last week PS3 lost by about 25K units. I predict that the gap will narrow and PS3 will win again, until the September price cut. At that time, Xbox 360 will outsell PS3, and then after the initial spike, the two systems should sell on par for the holiday season. I don't think PS3 will pass Xbox 360 this gen, but it will be close. It doesn't matter though; they will both share alot of games, and exclusives will go to whoever offers the bigger moneyhat.

after the price cut and the Jasper chip 360 will dominate the HD market for at least 4 months...

I think once the 20gb are out, the 80gb P$3s will hit and PS3 fans will declare victory again. When the US price cut hits in Sept., unless supply constrained, the 360 will outsell the PS3 enough in NA to eck out a win over the PS3 until early 2009.

Will the PS3 win this gen? Yeah. The 720 will be out while the PS3 is still here, claiming victory when no one cares anyhow. It's like a lil kid declaring he's the king of the playground and everyone has left the park and could care less. Get my drift?

Sony will stay ahead, I don't think there will be a significant impact.

 I'm aware. But that was when people believed this was a temporary price cut, and I'm guessing scrambled to get the "bargain" before they ran out (FWIW - I just got back from Wal Mart, and they only had the 60G in stock). It's no more a fair assessment than using the MGS4 numbers for the PS3.

It will most likely beat the 360 (I'm guessing 75m vs 60m before the next platforms come out), but it won't beat the Wii.

The wii will once again enjoy the battle that is PS360 and really experience no affect at all.

That said, I think the price drop will boost 360 sales and possibly affect PS3. Im waiting for the 360 to be cheaper to buy so i can play Fable when it comes out and Im sure their are others that feel the same.

 ==> I m fixing ur post ;))

"After the initial spike, PS3 will outsell AGAIN the Xbox360 WW during Xmas sales because it is still the cheaper BR player in NA, because Elite is still too expensive, because PS3 80gb > Premium 60gb, and because Arcade will not be able to compete with the Wii that possess too much appeal for the casual crowd compared to the Xbox360.
Overall, the PS3 should be 4.5-4M behind the Xbox360 at the end of this year 08." (WITHOUT PS3 price cut ofc)

(bundling LIPS + BanjoKazooie will not change anything to the poor appeal of the Arcade)

Actually, if the cheapest PS3 stays at $400, we could see some BR players under that price come the holidays, and we still don't know how many people are feeling the need to make that jump to BR.  The PS3 80GB may be > than 60G 360, but it's also $100> too.

I'm not saying the PS3 won't be the 360 - just that I suspect it'll be a closer call than many expect.