If this causes Sony to respond with a substantial price cut, then this would have been horrible for Microsoft WW, since the boosts WW, especially in Europe, would be really large for Sony.
However if Sony doesn't respond this whole holiday season the Xbox360 will beat out the PS3 by quite a bit. However, I think people are forgetting one thing about the PS3.
This winter marks the first holiday season that Blu-Ray is THE HD disc standard, which means stores like Best Buy and Walmart will most likely be heavily promoting Blu-Ray, and consequently, the PS3. This holiday season will be the heaviest HDTV season to date, and I think we are going to see the value of PS3's Blu-Ray capabilities put in to play.
I think the difference between the 360 and PS3 won't be AS big when the 360 drops to $199 because of that fact. As far as HD consoles sold for solely gaming, the 360 would win that by a mile.
