I'm interested to see how the US consumer reacts to this , unlike many in this thread I'm not going to claim I know how it will turn out.
Scenario 1. Microsoft brake a huge affordability barrier which will bring the 360 into the price ranges of many people waiting to either buy a 360 or just buy a HD console ( even more important considering NA's current economic situation.) Microsoft gets alot of new customers , steals potential PS3 and sees week on week sales.
Scenario 2. Price drops , demand increases for 2-3 weeks and drops within a 5k margin of the PS3 sales putting them about neck and neck.
Scenario3. Price drops , demand increases for 2-3 weeks and sales return slightly above where they were previously.
Any of the above could happen but scenario 1&2 are most likely , in anycase a PS3 price drop would nullify any effect of a XBOX price drop ( however this is pretty much not gonna happen) Sony will probably only drop price if the XBOX 360's price point is seen to cause long term problems for the PS3 in NA.










