I like arstechnica, but this article didn't seem to do justice. It really ignores the depth of the 360's library as well as the weak areas that MS has been attacking on the PS3.
MS has been destroying Sony on the JRPG front. You could say this is not a great strength niche in terms of sales compared to FPS or racing games, but the RPG niche was one of the greatest strengths of the PS2, and the only reason I owned/loved my ps2. MS has completely dismantled that so far this generation, which is no small feat.
Achieving 'parity' in a lot of titles that used to be ps3 exclusive is another area where MS has really dug into Sony's armor. Microsoft has turned Sony's vast wealth of exclusives into a handful of titles like MGS4, Ratchet and Clank, and Gran Turismo, which has allowed MS's own exclusives to shine even more prominently.
Their biggest weakness in price/hard drive size should be alleviated if this pricecut comes true in September. And with the number of JRPGs coming out this fall/spring for 360 in Japan, they are aggressively tackling that market as well.
Europe needs more work for sure, but I think those sales will come with the next round of mainstream pricing. Will be too late to win the battle there, but they should end pretty well with a late generation surge with the RRoD reputation faded and true mainstream pricing.
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