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I think the actual main factor here which people seem to forget is actually the games. This generation will be known as the multi-platform generation. As powerful as the PS3 is the games dont warrent paying the extra $100-$200 for over the 360. I think this is what were seeing in Japan. The world is in a bit of a bad place financially and i'm sorry but i just can't see familys around the world about to spend their money on the PS3. They want to spend as little as possible and this is how MS have got Sony by the balls. Sony will do a price cut next year this is going to happen. But at that time i can imagine MS will come out and say "look a 360 that can play FFXIII for $150!" Right now Sony is making less money then before. I think they said it dropped $2Billion in the past 3 months while MS made $4.37Billion in that period. That means Sony cant drop the price of the PS3 because the 17% profit they made on it in the past 3 months will be gone in an instance and they will start to lose money again. And Sony said they dont intend to do that on the PS3. Where as MS in contrast has money to play with but more importantly the sales to influence developers. Next year when the companies try to snap up exclusives MS is in a far better position to get them. Right now people have to understand Sony is the losing company. They are not in a position of power compared to what they were in the PS1&2 era. The Wii is like the new PS2. The casuals have all bought one. Where as the die hards have already got a PS3. The market is now to try and get those who have a Wii to buy either a PS3 or a 360. This xmas i think will be the last battleground for who comes 1st and second this generation. The Wii will win xmas, we all know this. The question is then what the numbers will be like between the 360 and the PS3. If the 360 does what it did last year and sold 1.4m units compared to the PS3's 800k then this one is over. If the gap gets beyond the current 6M i.e say a 7m gap then i just cant see the PS3 making that up before the next consoles come out.