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Let me first say...

Even with the head start I never thought MS would have sold as much as they have and my hats off to them. Thats amazing to me with going against the handheld revolution, the Wii and the PS name with the PS2 still selling pretty well on its own.

IMO MS wins every time someone buys a 360. This price drop will effect the US sales of the PS3. Anyone on the fence will have a hard time passing up the $199 price to play the hundreds of games. I know 2 people who are big Sony Fans and they are now buying a 360 after the price cut. They both bought the new Madden on their PS2's and have always waited for price drops before buying a new console. The 360 has some great games and for $199 they are going to jump ship and buy the arcade and a cheap 20 gig HD off of Ebay.

Can you honestly say if they didnt lower the price in Europe they would be selling as many units as they are now? Do price cuts not effect Europeans? It is more reasonable to think that the price cut could have been offset by the PS3 releasing quality games and the 360 bad press? I think if they didnt lower the price the XBOX would be way below where they are now.

I have never heard anyone say in the US... "Buy the 360 over the PS3 because it is from a US company." The US was not loyal to Microsoft as much as they were to Sony. If the PS3 had come out at the same time as the 360 and had the similar gaming library they would be #1 by a land slide. The PS2 was to big and gave Sony a huge advantage. No matter how you twist it they were the champs and this was their generation to lose. Nintendo came from the shadows and knocked out everyone and MS has been relentlessly still trying. The price cut is just another thing MS is doing to slay the PS beast. MS might be this huge company but they have been the underdogs and have been working a lot harder then Sony and it has shown.

The biggest success MS has is that they established themselves as a real player in the console gaming world. They do this by selling more and more XBOX 360s. Lower prices equal more sales.

If you mean that the price cuts won't "hurt the PS3" by keeping the 360 ahead of the PS3 in global sales then you are right. I think the PS3 will over take the 360 eventually. If you are talking about how these price cuts won't help "hurt the PS3" by taking away millions of potential future PS3 owners... Then you are wrong. The 360 has already done that and will continue to do so.