MS is dropping
the price on the 360, to undercut the Wii during the holiday season, in addition to being more competitive with the PS3.
The holidays are much more about price point than value to the buyer -- because the items are often not purchased for the buyer.
The PS3 has a great deal of value. During the holiday season, as the most expensive/valuable console, it may lose some ground to the 360 and Wii, because price point becomes more important than value for the duration of the gift buying season. People tend to buy valuable items for themselves or occasionally as very specific, highly desired gifts. Commonplace gifts are about price point.
Sad but true.
The Wii has the advantage of being highly desirable to children, so it'll get a lot of very specific requests. The PS3's value really appeals to adults more than kids though -- HD consoles purchased as gifts will be price-point oriented, except in circumstances where one brand was specifically requested over the other, or where the purchaser is really buying the gift for him/herself, and seeing the game-playing as a side benefit for someone else (i.e. PS3 for BluRay, +games for kids).
