MS is doing what they did with MS windows. Force the 360 down everyone's neck (by giving it away cheap) and once it is in every house hold, the next gen will see a more expensive 360 to bring the money back with less price cuts.
The problem here is, if you want a ps3, would you settle for a 360 just because it's cheaper?
Example: I want the new Nissan GTR and it costs £40,000, will i then settle for Mitsubushi EvoX which is £30,000 when i can afford to buy both? The answer in most cases is no.
However, with the price differences here, it is quiet likely gamers will end up having both consoles. The options prior were a Wii and then a 360 or ps3. Now it seems it will be a ps3 or 360. More then killing the ps3 market, I think they will also be biting a chunk of Ninty's ass. This is America's Hiroshima in the console world!
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