I'm still standing by the 360 keeping It's lead till atleast next December, probably not till 2010 that the PS3 has a good chance, and by then the 720 will be announced so MS will "claim" first place in next gen hardware.
I also predict MS will drop their console another $50 by next December *AND* have packs in this December on top of the current price drop to keep them in contention with the PS3. If somehow the Arcade is packed with a wiimote rip off or some game this XMas, I think Sony will have a hard time competing against a $200 HD console, hard drive or not.
Come next XMas if they keep the Arcade around It's hopefully gonna drop to $180, if not $150 aka the sweet spot, so Microsoft will give them a run for their money next holiday season to, and they can afford that considering the profits they make now even with all the RRODs.
It's just that simple.
