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It will be interesting to see which opinions will be closest to reality next season.

Sony seems content with a fair improvement over last year's holiday sales at minimal losses per unit sold. Playing the conservative card. Presumably they're counting on selling more software this season than last to push SCE further in to the black. IMO, this is their biggest area for improvement in terms of improving financials as well as convincing developers of the commercial viability of the platform. Due to increasing sales and demand, it's less of a hard sell although many are probably still sitting on the fence.

I currently see this coming holiday season potentially as the 360's last big season. If the currently established library in tandem with the now very accessible price structuring doesn't draw in the mass consumer, it will never happen at all. Future soft releases will simply remain on roughly even parity with those on other platforms, so it's no longer the main selling point.

At best, the platform will see another $50 drop across the board ($150 Arcade/$250 60GB Pro/$350 120GB Elite) in 2009. Beyond that, it's simply paving the way for the next generation of consoles.

No doom for the platform, but moderate success and profit for the 360 over the lifetime of the console. That's the best case scenario. Good enough to justify an Xbox 3.