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JGarret said:
and if they finish 3rd, but are making a profit on thier business model and software sales, the ONLY thing that 3rd place finish would accomplish would be to make some folks, feel better/worse about thier purchase on message boards...nothing else. AND if MS improves thier market share, vis-a-vis last generation, they will consider this a SUCCESS, 3rd place or no

I agree 100% with this.

Since all the Wii does is extend its lead over the HD systems, what I´m curious about is whether or not the PS3 will be able to surpass the 360´s worldwide install base before 2010....what do you think, TRios?

The Wii is another beast altogether, it's appeal is crazy broad.  I mean folks I know who would never even think of owning a console have expressed a desire or already own a Wii.  Crazy!  ALSO for the record, don't own a Wii yet either :(  I imagine that will come sooner rather than later though.  As the boy grows older I think it'd be easier to share with him.  Totally off topic, sorry.

To your question; I think that all things being equal, no it would not.  The difference between the two is decreasing but at a constant level, rather...the difference is currently not decreasing at an increasing level, if you follow me.  That being said the current numbers do not suggest that when added up over the next 15 months or so that the PS3 would catch the 360.

Clearly however all things are NOT equal.  Two factors I think dictate how soon they are equal: 1) how big of an effect the price drop has in the Americas and to a lesser extent Others/Japan and 2) if the MS price drop affect is significant, how long it takes Sony to respond with a drop of their own (to even the playing field) so to speak.  By January next year, I think this picture is MUCH clearer.

As a side note, I think any PS3 fan who DOESN'T own a PS3 yet, should hope for a big spike in MS sales due to this cut.  That is the ONLY way Sony will be forced to lower thier prices anytime soon.  Thanks for asking by the way, obviously as I'm not paid for this...I reserve the right to be completely wrong! HAHA.